HomeMy WebLinkAbout19442ORDINANCE NO. 19,442
AN ORDINANCE LEVYING FRANCHISE FEES TO BE PAID FOR THE
YEAR 2005 BY ALL CARRIERS PROVIDING LOCAL ACCESS
TELEPHONE SERVICE; PROVIDING FOR THE PAYMENT
THEREOF; AND FOR OTHER PURPOSES.
WHEREAS, the Southwestern Bell Telephone Company has for decades been
authorized by ordinance to operate its telephone system and all business incidental to or
connected with the conduct of a telephone business in the City; and
WHEREAS, pursuant to Little Rock, Ark. Ordinance No. 11,345 (Dec. 17, 1962), and
recognizing an order of the Arkansas Public Service Commission entered on December 10, 1957
in Docket U -281 relating to the treatment by the Telephone Company of all City special taxes,
the City granted Southwestern Bell Telephone Company the privilege to continue operation of its
telephone system and related business within the City and first provided for the payment of a
privilege tax by that company of $1.07 multiplied by the number of telephones in the City as of
the end of the preceding year; and
WHEREAS, pursuant to Ordinance No. 14,981 (November 5, 1985), the City Board of
Directors imposed, beginning on January 1, 1986, a change in the calculation of the privilege fee
for Southwestern Bell Telephone Company, to be in an amount equal to seven and thirty -two
hundredths percent (7.32 %) of the company's access line billing revenues for 1985 or a
minimum of One Million Seven Hundred Seventy -Five Thousand Dollars ($1,775,000), and
WHEREAS, subsequent ordinances thereafter incrementally raised the amount of the
minimum franchise fee until, beginning with Ordinance No. 16,557 (December 21, 1993) it
reached the amount $2,000,000, which minimum has remained in effect until the present time,
and
WHEREAS, after a review of the current market situation, the City has determined that
having a minimum franchise fee is no longer appropriate and is setting the minimum aside, and
1 WHEREAS, after a review of the current market situation, the City has determined
2 that having a minimum franchise fee is no longer appropriate and is setting the minimum
3 aside, and
4 WHEREAS, SBC (formerly Southwestern Bell Telephone Company) and other
5 telephone companies similarly providing a local access telephone system in the City are
6 now and will be occupying the streets, alleys, airways and other public rights -of -way of the
7 City for the purpose of operating and maintaining such local access telephone systems, and
8 WHEREAS, the City is legally authorized to impose, and all local access telephone
9 services companies are obligated to pay, a just and reasonable franchise fee in connection
10 with such company's local access telephone service operations in the City.
11 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF
12 THE CITY OF LITTLE ROCK, ARKANSAS:
13 Section 1. There is hereby imposed and each and every local access telephone
14 service carrier ( "Telephone Company ") shall pay to the City a franchise fee in an amount
15 equal to seven and thirty -two hundredths percent (7.32 %) of the respective Telephone
16 Company's local exchange access line charges collected within the City's corporate limits
17 during the previous month.
18 Section 2. Payments to the City by the Telephone Company for the franchise fee
19 shall be made monthly by the 20th day of each month.
20 Section 3. On a monthly basis, by the twentieth (20th) day of each month, the
21 auditor for each Telephone Company shall certify to the City that Telephone Company's
22 access line revenues collected during the previous month in Little Rock.
23 Section 4. The City recognizes and accepts the purposes and results of an Order of
24 the Arkansas Public Service Commission entered on February 7, 1980, in Docket U -30132
25 relating to the treatment by the Telephone Company of all city special fees.
26 Section 5. It is acknowledged that Ordinance No. 11,345 (amended by Ordinance
27 No. 14,981), which set out the terms and conditions of the present privilege authority, is the
28 controlling document over current local access telephone service franchises. Ordinance No.
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1 11,345 specifically provided that nothing contained therein was to be construed as giving
2 Southwestern Bell Telephone Company any exclusive privileges. Ordinance No. 14,981
3 amended Ordinance No. 11,345 to change the method of calculating the fee to that method
4 presently employed and to add a section detailing the City's utility relocation policy to be
5 complied with. That utility relocation policy shall remain in effect under this Ordinance.
6 Section 6. Nothing herein contained shall be construed as altering or amending any
7 other rights or obligations of the City or each Telephone Company as provided for in
8 Ordinance No. 11,345 except the language of Section 2 of Ordinance No. 11,345 pertaining
9 to the method of calculating the Telephone Company's annual franchise fee.
10 Section 7. Nothing in this Ordinance shall prevent the City from collecting from
11 Telephone Companies previously due but unpaid franchise fees.
12 Section 8. This ordinance shall be in effect on and after January 1, 2006.
13 PASSED: November 29, 2005
14 ATTEST:
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17 Nanc Wood, ity Clerk
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19 APPROVED AS TO LEGAL FORM:
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21 LU
"2i4-
22 Thomas M. Carpenter, City ttorney
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APPROVED: