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ORDINANCE NO. 118
OFFICIAL CITY
SECRETARY'S COPY
AN ORDINANCE WHEREBY THE CITY OF KENNEDALE, TEXAS, AND
SOUTHWESTERN BELL TELEPHONE COMPANY AGREE TO AMEND
ORDINANCE NO. 4 TO PROVIDE FOR A LONGER TERM AND TO ADD
TERMINATION AND OTHER PROVISIONS AS A RESULT OF THE
CHANGES MADE BY THE PUBLIC UTILITY REGULATORY ACT OF
1995, 74TH LEG., R.S. CH, 231, TEX. SESS. LAW SERV. 2017
(VERNON) (TO BE CODIFIED AS TEX. REV. CIV. STAT. ANN.
ART. 1446C-0).
WHEREAS, the City of Kennedale, hereinafter referred to as the
"CITY", adopted and approved Ordinance No. 4 on July 23, 1991,
which was accepted by Southwestern Bell Telephone Company,
hereinafter referred to as the "TELEPHONE COMPANY", on August 8,
1991; and
WHEREAS, TELEPHONE COMPANY and the CITY desire to extend the
term of Ordinance No. 4 as provided in this Ordinance; and
WHEREAS, it is to the mutual advantage of both the CITY and
the TELEPHONE COMPANY that the term of Ordinance No. 4 be extended;
and
WHEREAS, it is recognized by the parties that provisions set
forth in Ordinance No. 4 may create legal issue with respect to the
CITY's compliance with Section 3.2555 of the Public Utility
Regulatory Act of 1995 effective September 1, 1995, hereinafter
referred to as the "Revised PURR"; the parties agree and intend
that this amendment to Ordinance No. 4 constitutes an interim
arrangement to accommodate the needs of the parties, pending
clarification of the interpretation and application of the Revised
PURR.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF KENNEDALE, TEXAS, THAT;
Section 1. Section 4 of Ordinance No. 4 entitle TERM is
hereby amended to read as follows:
This ordinance shall be in force and in effect from
October 1, 1996 through December 31, 1997, unless earlier
terminated pursuant to Section 16, provided that at the
expiration of this initial period, such term shall be
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automatically extended for successive periods of one (1)
year, unless written notice of intent to terminate this
agreement is given by either party not less than ninety
(90) days prior to the termination of the then current
period. When such notice is given this agreement shall
terminate at the expiration of the then current period.
Section 2. Section 16 of Ordinance No. 4 entitled FUTURE
CONTINGENCY is hereby amended to add the designation "(a)" before
the existing paragraph of that Section and to add paragraphs (b),
(c) and (d) as set forth below:
(b) Both parties agree that the extension of this Ordinance is an
interim arrangement and is not intended to be used, and will not be
cited or referred to by either party, as evidence of what is in
compliance with the requirements of Section 3.2555 of the Revised
PURA. TELEPHONE COMPANY and CITY both hereby reserve all arguments
and/or positions as to the appropriate interpretation and
application required by the Revised PURA.
(c) The CITY agrees to provide written notice to the TELEPHONE
COMPANY of an original application or an agreement thereto, for a
consent, franchise or permit with the CITY for use of the RIGHTS-
OF-WAY in the CITY for the provision of any telecommunications
service within ten (10) days from receipt of such application.
(d) Notwithstanding anything to the contrary contained in this
Ordinance, if:
(1) an entity applies to the CITY for an original of, or an
amendment to a consent, franchise, or permit for the use
of the RIGHTS-OF-WAY in the CITY for the provision of any
telecommunications service that will be in competition
with TELEPHONE COMPANY'S service provided within the
geographical limits of the CITY; or
(2) an entity files an application with the Public Utility
Commission of Texas for the provision of any
telecommunications service that will be in competition
with TELEPHONE COMPANY's service provided within the
geographical limits of the CITY, including, but not
limited to a certificate of operating authority or a
service provider certificate of operating authority;
then,
the CITY and TELEPHONE COMPANY agree to negotiate in good faith to
~' establish a nondiscriminatory basis for compensation to the CITY
for use of CITY's RIGHTS-OF-WAY. Upon reaching an agreement on
compensation, CITY will adopt an amendment to Ordinance No. 4 or
adopt a separate ordinance to replace this Ordinance, and TELEPHONE
COMPANY will file its acceptance.
(e) The negotiations shall be governed by the following
agreements:
(1) If during the negotiations, CITY fails to negotiate with
TELEPHONE COMPANY or fails to employ good faith in
seeking a resolution of the issues or fails to include
TELEPHONE COMPANY in a least one meeting each month with
the competitor or competitors making application, to
discuss resolution of the issues, TELEPHONE COMPANY may
terminate Ordinance No. 4 upon a minimum of forty-five
(45) days written notice to CITY. This provision does
not require CITY to include TELEPHONE COMPANY in every
meeting with competitors, but only to meet separately
with TELEPHONE COMPANY and to meet at least monthly with
all parties who wish to discuss the issues and
participate in their resolution.
(2) Notwithstanding the failure of CITY to negotiate or to
employ good faith or include TELEPHONE COMPANY in
meetings as described in (1) above, TELEPHONE COMPANY
agrees that it will not exercise its right to give notice
of termination of Ordinance No. 4 under (1) above until
the time at which a competitor receives all approvals
from the CITY and the Texas Public Utility Commission
that are necessary to provide the competitive service
within the CITY.
(3) If during the negotiations, TELEPHONE COMPANY fails to
employ good faith in seeking a resolution of the issues,
CITY may terminate Ordinance No. 4 upon a minimum of
forty-five (45) days written notice to TELEPHONE COMPANY,
and adopt an ordinance imposing nondiscriminatory
requirements and compensation for the use of CITY RIGHTS-
OF-WAY for telecommunications services.
(4) If CITY and TELEPHONE COMPANY are unable to reach
agreement and Ordinance No. 4 is not terminated under (1)
or (3), TELEPHONE COMPANY will continue to pay
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compensation to CITY under Ordinance No. 4 until such
time as (i) agreement is reached, (ii) Ordinance No. 4
expires, or (iii) a competitor begins to offer service to
customers within the CITY, whichever occurs first. If
(ii) or (iii) occurs before an agreement is reached, CITY
may adopt an ordinance imposing nondiscriminatory
requirements and compensation for use of CITY RIGHTS-OF-
WAY for telecommunications services. Acceptance of this
Ordinance not withstanding, TELEPHONE COMPANY reserves
any and all rights it may have, at law or in equity, to
challenge the legality or propriety of any such
ordinance.
Section 3. The TELEPHONE COMPANY shall have thirty (30) days
from and after the passage and approval of this Ordinance to file
its written acceptance hereof with the City Secretary, and upon
such acceptance being filed, this Ordinance shall take effect and
be in force as of October 1, 1996.
Passed and approved hereof this 10 day of
A.D., 1996.
October
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Mayor, --
City of Kenned Texas
ATTEST:
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City ecr tart'
I, Kathy Turner City Secretary of the
City of Kennedale, Texas, do hereby certify that the foregoing is
a true and correct copy of Ordinance Number llg finally passed
and approved by the City Council of Kennedale, Texas, at a regular
meeting held on the 10 day of October 1996.
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City ecr tart'