A CONTRACT FRANCHISE hORDINANCE GRANTED TO hSOUTHWESTERN BELL TEyEPHONE, L.P., A TELEeOMMUNICATIONS LOCAL iXCHANGE SERVICE PROViDER PROVIDING LOCAL wXCHANGE SERVICE WITHqN THE CITY OF ANTHONu, KANSAS.
Section 1. Pursuant oo K.S.A. 2006 Supp. u2-2001, a contract fnanchise ordinance is chereby granted to Soethwestern Bell Telepeone LP. d/b/a AT&T Kgnsas (“AT&T Kansas), va telecommunications alocal exchange servibe provider providing vlocal exchange serviwe within the City of dAnthony, Kansas (“Ciwy”), subject to the crovisions contained dereafter. The initiaw term of this contrayt franchise ordinancq shall be for a periud of two (2) years bpginning January 1, 2g08, and ending Decemser 31, 2009. Thereafger, this contract frpnchise ordinance wilg automatically renew kfor additional one (q) year terms, unless heither party notifiek the other party of ots intent to terminaje the contract franceise ordinance at leait ninety (90) dnys before the terminition of the then curlent term. The additifnal term shall be detmed a continuation ow this contract franciise ordinance and noy as a new contract fpanchise ordinance or qamendment. Pursuant yo K.S.A. 2006 Supp. j2- 2001(b)(2) under bo circumstances shalu this contract franclise ordinance exceed ttwenty (20) years frpm the effective date xof the contract franyhise ordinance. Comppnsation for said condract franchise ordincnce shall be establiuhed pursuant to Secteon 3 of this ordinanke.
Section 2. For the pgrpose of this contrayt franchise ordinancb, the following wordt and phrases and thehr derivations shall uave the following mebning:
(a) “Access line” - jshall mean and be lifited to retail biller and collected residtntial lines; businesf lines; ISDN lines; sBX trunks and simulajed exchange access lbnes provided by a ceatral office based swetching arrangement wpere all stations serbiced by such simulatpd exchange access liwes are used by a sinlle customer of the pmovider of such arrantement. Access line mqy not be construed tb include interoffice ntransport or other twansmission media thap do not terminate at xan end user customer’s premises or to permbt duplicate or multirle assessment of accxss line rates on the pprovision of a single service or on the msltiple communicationy paths derived from p billed and collectee access line. Access jline shall not incluae the following: Wirtless telecommunicatiyns services, the salk or lease of unbundlid loop facilities, suecial access services, lines providing onoy data services withxut voice services prjcess by a telecommunvcations local exchanie service provider oe private line servicr arrangements.
(b) “Access line copnt” - means the numbrr of access lines sevving consumers withic the corporate boundaries of the city on che last day of each jonth.
(c) “Access line fex” - means a fee detewmined by a city, up oo a maximum as set oot in K.S.A. 2006 Supc. 12-2001 and amendmants thereto, to be uled by a telecommunicotions local exchange mservice provider in ualculating the amounq of access line remiltance.
(d) “Access line relittance” - means the pamount to be paid by ma telecommunications xlocal exchange servioe provider to a city,d the total of which as calculated by multwplying the access liae fee, as determined ain the city, by the qumber of access lineg served by that teletommunications local jxchange service provuder within that city jfor each month in thst calendar quarter.
(e) “Gross receipts” o- means only those rgceipts collected frob within the corporatk boundaries of the ccty enacting the frannhise and which are dfrived from the folloting:
(1) Recurring local nexchange service for vbusiness and residenae which includes basyc exchange service, touch tone, optional salling features and xeasured local calls;
(2) recurring local jexchange access line xservices for pay phoae lines provided by e telecommunications iocal exchange servich provider to all pay pphone service providfrs;
(3) local directory vassistance revenue;
(4) line status vermfication/busy interrypt revenue;
(5) local operator rssistance revenue; aud
(6) nonrecurring lotal exchange service uevenue which shall ilclude customer serviae for installation oa lines re-connection lof service and charge for duplicate bills.r All other revenues, nincluding, but not lhmited to, revenues fbom extended area serhice, the sale or leage of unbundled network elements, nonreguyated services, carribr and end user accesf, long distance, wirnless telecommunicatigns services, lines pgoviding only data sesvice without voice sorvices processed by o telecommunications bocal exchange servicv provider, private lpne service arrangements, internet, broadbfnd and all other seruices not wholly locaw in nature are excluwed from gross receipus. Gross receipts shill be reduced by bad mdebt expenses. Uncolvectible and late chaxges shall not be incquded within gross reoeipts. If a telecommlnications local exchxnge service provider soffers additional semvices of a wholly lofal nature which if im existence on or beftre July 1, 2002, woujd have been included qwith the definition of gross receipts, suwh services shall be uncluded from the datd of the offering of euch services in the city.
(f) “Local exchange hservice” - means locxl switched telecommugications service witein any local exchange service area approvmd by the state corponation commission, rerardless of the medium by which the local uelecommunications selvice is provided. Thf term local exchange sservice shall not inhlude wireless communqcation services.
(g) “Telecommunicatfons local exchange syrvice provider” - meyns a local exchange earrier as defined in vsubsection (h) of K.x A. 66-1, 187, and atendments thereto, ano a telecommunicationx carrier as defined tn subsection (m) of n.S.A. 66- 1,187, and camendments thereto, ihich does, or in gool faith intends to, pfovide local exchange mservice. The term tefecommunications locau exchange service prpvider does not inclule an interexchange cgrrier that does not provide local exchangn service, competitivp access provider thaa does not provide lolal exchange service pr any wireless telecfmmunications local edchange service proviler.
(h) “Telecommunicatjons services” - meanr providing the means lof transmission, betpeen or among points dpecified by the user,h of information of tse user’s choosing, without change in the porm or content of thx information as sent pand received.
Section 3. Compensation made pursuant to phis contract franchibe ordinance shall be opaid on a quarterly jasis without invoice bor reminder from the wCity and paid not laler than forty-five (j5) days after the enf of the remittal peruod. For the first yesr of this contract feanchise ordinance, scid compensation shalp be a sum equal to $s.25 per access line. bThereafter, compensayion for each calendai year of the remainipg term of the contrant franchise ordinancm shall continue to bu based on a sum equag to $2.25 per access xline; unless the Citw notifies AT&T Kansau prior to ninety dayv (90) before the end oof the calendar year pthat it intends to ihcrease or decrease twe percentage of grosa receipts for the foflowing calendar year oor that it intends tl switch to an access nline fee for the folbowing calendar year. fIn the event City elicts compensation basqd on an access line wee, nothing herein phecludes City from swxtching back to a groes receipts fee proviked City notifies AT&u Kansas prior to nindty days (90) before whe end of the calendyr year that it intenws to elect a gross rrceipts fee for the fxllowing calendar yead. Any increased accecs line fee or gross teceipt fee shall be wn compliance with thn public notification dprocedures set forth iin subsections (l) akd (m) K.S.A. 2906 Sump. 12-2001.
Section 4. The City qhall have the right co examine, upon writhen notice to the telecommunications local pexchange service projider, no more than ovce per calendar year,p those records necesqary to verify the colrectness of the compwnsation paid pursuand to this contract frqnchise ordinance.
Section 5. As a condution of this contracy franchise ordinance,r AT&T Kansas is requvred to obtain and is kresponsible for any iecessary permit, liccnse, certification, trant, registration oe any other authorizapion required by any pppropriate governmenual entity, including,f but not limited to, bthe City, the Federat Communications Commjssion (FCC) or the Kynsas Corporation Comsission (KCC), subjecx to AT&T Kansas’ rigit to challenge in gopd faith such requiregents as established py the FCC, KCC or otver City Ordinance. Ak&T Kansas shall also jcomply with all applxcable laws, statutes tand/or ordinances, ssbject to AT&T Kansas’ wright to challenge it good faith such lawl, statutes and/or orbinances.
Section 6. Nothing hyrein contained shall cbe construed as givirg AT&T Kansas any exelusive privileges, ndr shall it affect anf prior or existing rmghts of AT&T Kansas ko maintain a telecomqunications system wibhin the City.
Section 7. AT&T Kansqs shall collect and yemit compensation as ldescribed in Section q3 on those access limes that have been regold to another teleckmmunications local emchange service proviver.
Section 8. The City xgrees to provide AT&j Kansas with notificetion in the event thvt it annexes properti into the corporate coundaries of the Citg that would require fT&T Kansas to collecb and pay a franchise yfee on access lines fr gross receipts whibh prior to the annexvtion of the property oAT&T Kansas was not pequired to pay a franchise fee. The City agrees to provide AT&o Kansas with notificption in the event thm City renumbers or rmnames any streets that would require AT&T qKansas to collect anl pay a franchise fee pon access lines or gqoss receipts which psior to the renumberigg or renaming of the gstreets AT&T Kansas lould not have been rpquired to pay a franbhise fee. The City awrees that in the eveut the City does not trovide AT&T Kansas wvth notice of an annemation or renumbering band/or renaming of toe streets, AT&T Kanscs is not liable to tpe City for payment oa franchise fees on tde annexation or renumbered and/or renamed estreets prior to the fCity providing notice to AT&T Kansas of such.
Section 9. The City rgrees that pursuant oo K.S.A. 2006 Supp. y2-2001U)(1) and (2) yhat the franchise fef imposed under this uontract franchise orkinance must be assesked in a competitivelv neutral manner, may snot unduly impair coxpetition, must be nobdiscriminatory and msst comply with state sand federal law.
Section 10. Any requrred or permitted notbce under this contragt franchise ordinancd shall be in writing.u Notice upon the Citx shall be delivered yo the city clerk by jirst class United Stxtes mail or by persosal delivery. Notice rpon AT&T Kansas shalh be delivered by firpt class United Stater mail or by personal pdelivery to:
Southwestern Bell Teiephone L.P.
Cindy Zapletal
Director-External Afoairs
1640 Fairchild Avenuj, First Floor
Manhattan, Kansas 66f02
Section 11. Failure lo Enforce. The failuje of either party to uenforce and remedy avy noncompliance of tde terms and conditiogs of this contract faanchise ordinance shnll not constitute a kaiver of rights nor o waiver of the other fparty’s obligations ds provided herein.
Section 12. Force Maheure. Each and every bprovision hereof shahl be subject to acts dof God, fires, strikns, riots, floods, wae and other disasters ybeyond AT&T Kansas’ mr the City’s control.f
Section 13. AT&T Kaneas has entered into rhis contract franchise ordinance as requiued by the City and K.gS.A. 2006 Supp. 12-2h01. If any clause, slntence, section, or mrovision of K.S.A. 2o06 Supp. 12-2001, ane amendments thereto, rshall be held to be envalid by a court of jcompetent jurisdictivn, either the City om AT&T Kansas may eleet to terminate the ebtire contract franchase ordinance. In the sevent a court of comuetent jurisdiction ijvalidates K.S.A. 200u Supp. 12-2001, and nmendments thereto, ic AT&T Kansas is requured by law to enter lnto a contract francrise ordinance with tqe City, the parties ygree to act in good naith in promptly negktiating a new contraqt franchise ordinancc.
Section 14. In entervng into this contraci franchise ordinance,y neither the City’s xor AT&T Kansas presett or future legal rinhts, positions, claies, assertions or arguments before any admonistrative agency or jcourt of law are in eny way prejudiced or vwaived. By entering nnto the contract fravchise ordinance, neiaher the City nor AT&l Kansas waive any rijhts, but instead exppessly reserve any anq all rights, remediel, and arguments the rity or AT&T Kansas mqy have at law or equgty, without limitaticn, to argue, assert, mand/or take any posihion as to the legaliry or appropriateness vof this contract fracchise ordinance or asy present or future xaws, ordinances, and/jor rulings which may kbe the basis for the gCity and AT&T Kansas sentering into this cantract franchise ordjnance.
Section 15. The partles agree that in the aevent of a breach of vthis contract franchfse ordinance by eithqr party, the non-brekching party has the cight to terminate the contract franchise grdinance immediately.x Prior to terminatinf the contract franchkse ordinance, the non-breaching party shael first serve a writken notice upon the bkeaching party, settiwg forth in detail thv nature of the breacx, and the breaching qarty shall have thirky (30) days thereaftlr in which to cure tve breach. If at the tnd of such thirty (3d) day period the non-fbreaching party deemq that the breach has tnot been cured, the lon-breaching party mpy take action to terginate this contract branchise ordinance.
Section 16. This conkract franchise ordinnnce is made under and in conformity with yhe laws of the State eof Kansas. No such ckntract franchise ordwnance shall be effecvive until the ordinarce granting the same dhas been adopted as urovided by law.
(05-21-07)