1999-138-RES A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
RESOLUTION NO, 99-138
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS, ESTABLISHING OF THE BASE AMOUNT FOR CALCULATING THE CITY'S
TELECOMMUNICA TIONFRANCmSE COMPENSATION PURSUANT TO STA TE LAW;
ALLOCATING THE BASE AMOUNT AMONG THREE CATEGORIES OF
TELECOMMUNICATIONS USERS; PROVIDING FOR EXECUTION AND FILING OF
FORMS; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE
SUBJECT; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, in the past, fees paid to municipalities for the use of public right-of-way by
telecommunications providers were determined by several methods such as percentage of gross
revenues, fee-per-foot, flat fee, fee per line, and others; and,
WHEREAS, the recent session of the 76th Texas Legislature changed the approach for
compensation to municipalities in House Bill 1777, also known as Chapter 283 of the Local
Government Code; and,
WHEREAS, pursuant to the aforesaid House Bill 1777, all telecommunications franchises
between a certificated telecommunications provider and a municipality will be based on a flat fee per
access line method; and,
WHEREAS, as a consequence of these legislative changes, cities are required by the Public
Utility Commission and state law to report their 1998 franchise compensation (including any
escalation during calendar year 1999) for the purposes of establishing a fee per access line; and,
WHEREAS, municipalities are likewise required under House Bill 1777 to report an
allocation formula designating a ratio or percentage of access line fees to be paid by three designated
categories of telecommunication users; and,
WHEREAS, those three categories of users consist of a residential category ( Category One),
commercial users (Category Two), and a third special category including certain trunk line users and
special users (Category Three); and,
WHEREAS, the process of establishing the flat fee and allocating the fee among
telecommunication users will provide consistency of charge, but at the same time will not allocate the
fee on the basis of the actual cost of the service by the individual service user, thereby allowing some
service users to experience a savings and some to experience an additional cost as a consequence of
such across-the-board allocations; and,
WHEREAS, regardless of such disparity caused by said allocation, the city is required to
make such allocations or allow the State of Texas to make said allocations in lieu of a localized
decision; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS:
Section l.
Section 2,
Section 3.
That the findings set out in the preamble to this resolution are hereby in all things
approved.
That there is hereby authorized the establishment of the base amount for calculating
municipal telecommunications franchise compensation for the City of Paris pursuant
to Chapter 283 of the Local Government Code and House Bill 1777 in the minimum
amount of$186,850.00, including escalation, or more as shall be determined by the
City Attorney and the City Manager in accordance with state law, as such base
amount was received exclusively from Southwestern Bell Telephone Company and
no other provider.
That the base amount hereby determined shall be allocated among three categories of
users as identified in the Public Utility Commission of Texas forms for such
allocations, a copy of which is attached hereto and for all purposes incorporated
herein, such allocation to be in the following ratio:
Category One (residential) I:
Section 4,
Section 5,
Category Two (commercial) 2,5:
Category Three (other) 2,5:
with a Category One figure not to exceed $0,70 per Category One line per Month.
This categorization is specifically conditioned upon the City's understanding that low
cost life line and telephone assistance service numbers are excluded from Category
One lines as instructed by the Public Utility Commission, and the City reserves the
right to supplement its designation ratios.
That the City Manager, City Attorney, and other appropriate city officials as required,
are hereby authorized to timely execute and file with the Public Utility Commission
of Texas, any and all documents incident to compliance with Chapter 283 of the
Texas Local Government Code (HB 1777), in accordance with this resolution,
That this resolution shall be effective from and after its date of passage,
PASSED AND APPROVED this 29th day of November, 1999.
ATTEST:
~~,,~
Mattie Cunningham, City Clerk
APPROVED AS TO FORM: