HomeMy WebLinkAbout20069, "
CI�%
2009005324 Received: 112712009 11:01:06 AM
° `'
Recorded: 01/2712009 11:21:22 AM Filed &
'• =
Recorded in Official Records of PAT O'BRIEN,
PULASKI COUNTY CIRCUITICOUNTY CLERK
uj'
Fees $25.00
' ORDINANCE NO. 20,069
N'ORDINANCE TO
LEVY FRANCHISE
FEES TO BE PAID BY ALL CARRIERS
PROVIDING LOCAL ACCESS TELEPHONE SERVICE; PROVIDE 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
WHEREAS, SBC (formerly Southwestern Bell Telephone Company) and other telephone
companies similarly providing a local access telephone system in the City are now and will be
occupying the streets, alleys, airways and other public rights -of -way of the City for the
purpose of operating and maintaining such local access telephone systems, and
WHEREAS, the City is legally authorized to impose, and all local access telephone
services companies are obligated to pay, a just and reasonable franchise fee in connection with
such company's local access telephone service operations in the City.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF
LITTLE ROCK, ARKANSAS:
Section 1. There is hereby imposed and each and every local access telephone service
carrier ( "Telephone Company ") shall pay to the City a franchise fee in an amount equal to seven
and thirty -two hundredths percent (7.32 %) of the respective Telephone Company's local
exchange access line charges collected within the City's corporate limits during the previous
month.
Section 2. Payments to the City by the Telephone Company for the franchise fee shall
be made monthly by the 20th day of each month.
Section 3. On a monthly basis, by the twentieth (20th) day of each month, the auditor
for each Telephone Company shall certify to the City that Telephone Company's access line
revenues collected during the previous month in Little Rock.
Section 4. The City recognizes and accepts the purposes and results of an Order of the
Arkansas Public Service Commission entered on February 7, 1980, in Docket U -30132 relating
to the treatment by the Telephone Company of all city special fees.
Section 5. It is acknowledged that Ordinance No. 11,345 (amended by Ordinance No.
14,981), which set out the terms and conditions of the present privilege authority, is the
controlling document over current local access telephone service franchises. Ordinance No.
11,345 specifically provided that nothing contained therein was to be construed as giving
Southwestern Bell Telephone Company any exclusive privileges. Ordinance No. 14,981
amended Ordinance No. 11,345 to change the method of calculating the fee to that method
presently employed and to add a section detailing the City's utility relocation policy to be
complied with. That utility relocation policy shall remain in effect under this Ordinance.
Section 6. Nothing herein contained shall be construed as altering or amending any
other rights or obligations of the City or each Telephone Company as provided for in
Ordinance No. 11,345 except the language of Section 2 of Ordinance No. 1 1,345 pertaining to
the method of calculating the Telephone Company's annual franchise fee.
Section 7. Nothing in this Ordinance shall prevent the City from collecting from
Telephone Companies previously due but unpaid franchise fees.
Section 8. This ordinance shall be in effect on and after january 1, 2009.
PASSED: December 22, 2008
ATTEST:
---- - - - - --
Nancy Wo ridi, C ity Clerk
APPROVED AS TO LEGAL FORM:
Thomas M. Carpenter, Ci Attorney
APPROVED:
Mark Stodola, Mayor