The purpose of this article is to:
(1) 
Assist in the management of the rights-of-way;
(2) 
Govern the grantees’ use and occupancy of the rights-of-way;
(3) 
Secure fair and reasonable compensation for the use and occupancy of the rights-of-way in a nondiscriminatory and competitively neutral manner; and
(4) 
Assist the city in its efforts to protect the public health, safety and welfare.
(Ordinance 98-01-19-1, sec. 1.0, adopted 1/19/98)
Whenever used in this article, the following terms, as well as their singulars, plurals and possessives, shall have the following definitions and meanings, unless the context of the sentence in which they are used indicates otherwise:
Access line.
(1) 
Each access line consisting of the grantee’s transmission media that connect to the end user customer’s premises network interface within the city and the grantee’s local serving facilities (these serving facilities include central office facilities, distribution frame facilities or other similar facilities) and allowing delivery of telecommunications services within the city; and
(2) 
Each termination point or points within the city of a non-switched telephone circuit consisting of the grantee’s transmission media dedicated for use between specific locations identified by an end user customer.
Interoffice-transport and other transmission media that do not terminate at an end user customer’s network interface device are not access lines that would be separately identified and counted for the purposes of assessing the monthly line fee.
Cable Act.
The Cable Communications Policy Act of 1984, 47 U.S.C. section 532 et seq., as now and hereafter amended.
Cable operator.
A person providing or offering to provide cable service within the city as that term is defined in the Cable Act.
Cable service.
“Cable service” as defined in the Cable Communications Policy Act of 1984, as amended, 47 U.S.C. section 532 et seq.
Certificated telecommunications utility.
A “telecommunications utility” as used in the Public Utility Regulatory Act of 1995, V.T.C.A., Utilities Code, section 51.002(11).
Direction of the city.
All ordinances, laws, rules, and regulations of the city that are not inconsistent with this article and that are now in force or may hereafter be passed and adopted.
Facilities.
Any and all of the grantee’s duct spaces, manholes, poles, conduits, underground and overhead passageways, and other equipment, structures, plant, and appurtenances and all associated transmission media.
FCC or Federal Communication Commission.
The federal administrative agency, or lawful successor, authorized to regulate and oversee telecommunications carriers, services and providers on a national level.
Governing body.
The mayor and city council of the city.
Grantee.
The person to whom or for which a municipal consent is granted under this article, and the lawful successor, transferee, or assignee of said person.
Line fee.
A monthly fee assessed on each access line owned by the grantee and paid by the grantee to the city as compensation for the use and occupancy of the rights-of-way.
Municipal consent.
The individual agreement between the city and an individual grantee, as expressed in an ordinance of the governing body, whereby the city grants the right to a grantee, who serves or wants to serve customers within the city, to use and occupy the rights-of-way for the acquisition, installation, maintenance, repair, construction, reconstruction and/or operation of telecommunications facilities.
Person.
A natural person (an individual), corporation, company, association, partnership, firm, limited liability company, joint venture, joint stock company or association, and other such entity.
Private line service.
A non-switched telephone circuit dedicated for use between specific locations identified by an end-user customer.
Private line termination point.
The channel termination point or points within the city of a private line service.
Public utility.
A public utility as that term is used in the Public Utility Regulatory Act of 1995, V.T.C.A., Utilities Code, section 11.004, including municipally owned and/or operated utilities.
PUC or public utility commission of the state.
The state administrative agency, or lawful successor, authorized to regulate and oversee telecommunications carriers, services and providers in the state.
Rights-of-way.
All present and future public streets, avenues, highways, alleys, sidewalks, boulevards, drives, tunnels, easements, bridges, and other such similar passageways, thoroughfares, and public ways.
Telecommunication provider.
Every person who provides telecommunications service over telecommunication facilities without any ownership or management control of the facilities.
Telecommunications service.
The providing or offering for rent, sale or lease, whether in exchange for money or other value, of the transmittal of or of plant, equipment, facilities, or other property for the transmittal of voice, data, images, graphics and other communications between or among points by wire, fiber optics, or other similar facilities, but does not include the provision to the public of any “wireless service,” as defined by law, and does not include long distance transmissions (interLATA and intraLATA toll transmissions). Notwithstanding this definition, however, a grantee is not authorized to provide cable service as a cable operator in the city under this article, but must first obtain a franchise from the city for that purpose, under such terms and conditions as may be required or authorized by law.
Transmission media.
Any and all of the grantee’s cables, fibers, wires or other physical devices used to provide telecommunications services and to transmit and/or receive communication signals, whether analog, digital or of other characteristics, and whether for voice, data or other purposes.
Uncollectible fee.
Any line fee passed on by the grantee and charged by the grantee to an end user customer that has not been paid after the grantee has undertaken all reasonable efforts to collect the passed-through line fee.
Use.
The grantee’s acquisition, construction, reconstruction, maintenance or operation of any facilities in, over, under, along, through or across the rights-of-way for any purpose whatsoever.
(Ordinance 98-01-19-1, sec. 2.0, adopted 1/19/98)
(a) 
A municipal consent shall first be obtained by a person before commencing to use and occupy the rights-of-way for the purpose of acquiring, installing, maintaining, repairing, constructing, reconstructing, and/or operating his, her or its telecommunications facilities.
(b) 
Any person wanting to use the rights-of-way for the installation of facilities shall apply to the city for a municipal consent.
(c) 
Within 90 days after receiving a complete application, the governing body shall issue a written determination granting or denying the application in whole or in part. If the application is denied, the written determination shall include the reasons for denial.
(d) 
All municipal consents shall take the form of an ordinance duly passed by the governing body and accepted by the grantee. Each municipal consent shall incorporate all applicable provisions of this article and shall follow a standardized format insofar as practical. Any special terms or conditions included within a grantee’s municipal consent shall be nondiscriminatory and competitively neutral.
(e) 
No municipal consent granted under this article shall confer any exclusive right, privilege, license or franchise to use or occupy the rights-of-way for the acquisition, installation, maintenance, repair, construction, reconstruction, and operation of telecommunications facilities or for any other purpose.
(f) 
An initial municipal consent granted hereunder shall be valid for a term of not more than ten (10) years. At the expiration of the initial period, the term of the municipal consent shall be automatically extended for successive periods of one year, unless written notice of intent to terminate the municipal consent is given not less than ninety days prior to the termination of the then-current period by either the city or the grantee. When such notice is given, the municipal consent shall terminate at the expiration of the then-current period. Regardless of the right of automatic renewal, the total number of years of a municipal consent shall not exceed eighteen years.
(g) 
No municipal consent granted under this article shall convey any right, title or interest in city property or rights-of-way, but shall be deemed a municipal consent to use and occupy rights-of-way to the limited extent and for the limited purposes and terms stated in the municipal consent. Further, no municipal consent shall be construed as any warranty of title. The applicant retains full responsibility for the adequacy of the design of the telecommunications facilities.
(h) 
Each municipal consent granted under this article is subject to the city’s right to fair and reasonable compensation, on a nondiscriminatory and competitively neutral basis, for the grantee’s use and occupancy of rights-of-way.
(i) 
If a grantee desires to renew its municipal consent under this article, the grantee shall, not more than 180 days nor less than 90 days before expiration of the then-current municipal consent, apply to the city for renewal of its municipal consent.
(j) 
Within thirty (30) days after receiving an application under subsection (i) of this section, the governing body shall issue a written determination granting or denying the renewal application in whole or in part. If the renewal application is denied, the written determination shall include the reasons for nonrenewal.
(Ordinance 98-01-19-1, sec. 3.0, adopted 1/19/98)
(a) 
No rights agreed to in any municipal consent by the city shall be exclusive, and the city reserves the right to grant franchises, licenses, easements or permissions to use the rights-of-way within the city to any person as the city, in its sole discretion, may determine to be in the public interest.
(b) 
The rights granted by a municipal consent inure to the benefit of the grantee. The ordinance and the rights granted by it shall not be assigned, transferred, or sold to another by the grantee without the express written consent of the city, as approved by adoption of an ordinance by the city council. The city may determine in any municipal consent that, for the purposes of this section, assignment, transfer or sale means a change of operating control of the grantee, expressly excepting an assignment or transfer to entities that control, are controlled by or are under common control with the grantee; provided that no such assignment or transfer of rights granted by the applicable municipal consent to an entity that controls, is controlled, or is under common control with the grantee shall either act to relieve the grantee of any obligation hereunder or confer any right on such transferee until the city has been notified of such transfer, such transferee has executed a writing agreeing to be bound by the terms of this article in exchange for the city’s recognition of such transferee’s rights under the municipal consent, and such transfer has been approved by any governmental authority, other than the city, that is required by applicable law to approve such transfer. Any consent that may be required pursuant to this subsection to give effect to a transfer shall not be withheld unreasonably by the city.
(Ordinance 98-01-19-1, sec. 4.0, adopted 1/19/98)
(a) 
Line fee imposed.
To compensate the city for the use and occupancy of the rights-of-way, each grantee shall pay the city during the life of the grantee’s municipal consent a monthly line fee for each access line owned by the grantee, calculated at month-end, that is activated for use by an end use customer. For calendar year 1998, the monthly municipal telecommunication line fee shall be fixed in the following amounts:
(1) 
Per residential access line: $0.35.
(2) 
Per nonresidential access line: $0.70.
Line fees payable pursuant to this article and any municipal consent shall be reviewed periodically by the city council. No increase in line fees payable by any grantee pursuant to this article and any municipal consent shall be effective until such grantee has been provided with 90 days’ advance written notice of such an increase.
(b) 
Collection of line fee by grantee.
Pursuant to Tex. Utilities Code section 54.206, a grantee may collect the line fee imposed by the city pursuant to this article through a pro rata charge to the customers in the boundaries of the city, including any telecommunications providers who are leasing, reselling or otherwise using the grantee’s access lines to provide telecommunications services. With respect to a telecommunications provider leasing, reselling, or otherwise using a grantee’s access line, if a grantee believes it does not have sufficient information to determine the appropriate rate to apply, then the higher line fee shall apply until such time as the telecommunications provider certifies in writing to the grantee sufficient information to determine the correct line fee. If a telecommunications provider certifies in writing information for the application of a line fee, the grantee may bill the telecommunications provider on the basis of the information provided. To the extent allowed by applicable law, if a grantee obtains evidence of misrepresentation or other misreporting by a telecommunications provider, the grantee shall supply such evidence to the city; however, any other provision of this article notwithstanding, a grantee shall not be liable for underpayment of line fees resulting from the grantee’s reliance upon the written certification provided by a telecommunications provider.
(c) 
Report of number of access lines.
A grantee shall provide to the city, within a reasonable time after receipt of the city’s written request therefor, a report showing the number of access lines owned by such grantee that are serving end use customers’ premises within the city. The city agrees that the report shall be used solely for the purpose of verifying the number of the grantee’s access lines serving end use customers’ premises within the city. Upon written request, the grantee shall verify the information in the report and, upon reasonable advance notice, produce to the city and permit inspection by the city of all non-customer-specific records and documents reasonably calculated to verify the information. Except as otherwise provided by applicable law, the city shall not disclose to the public any proprietary information included in any report or record made available to the city pursuant to this section.
(d) 
Annexation and disannexation.
Within thirty days following the date of the passage of any action effecting the annexation of any property to or the disannexation of any property from the city’s corporate boundaries, the city shall furnish to each grantee written notice of the action and an accurate map of the city’s corporate boundaries showing, if available, street names and number details. For the purpose of compensating the city under this article, a grantee shall start including access lines within the affected area in the grantee’s count of access lines on the effective date designated by the comptroller of public accounts of the state for the imposition of state local sales and use taxes, but in no case less than 30 days from the date the grantee is notified by the city of the annexation.
(e) 
Confidential records.
If the grantee notifies the city of the confidential nature of any information, reports, documents, or writings, the city agrees to maintain the confidentiality of the information, reports, documents, and writings to the extent permitted by law.
(f) 
No other fees.
The line fees due pursuant to this article shall be in lieu of any permit, license, approval, inspection, or other similar fees or charges, including, but not limited to, all general business license fees customarily assessed by the city for the use of the rights-of-way against persons operating businesses similar to that of the grantee.
(g) 
Timing of payment.
The grantee shall remit the line fee on a quarterly basis. The payment shall be due on the forty-fifth day following the close of each calendar quarter for which the payment is calculated.
(h) 
Uncollectibles.
A grantee has a statutory right to pass through to its customers on a pro rata basis any compensation paid to the city for access to the rights-of-way. Any other provision of this article notwithstanding, the grantee shall not be obligated to pay the city any uncollectible line fees.
(i) 
Leased facilities.
Other provisions of this article notwithstanding, the grantee shall not include in its monthly count of access lines and shall not remit a line fee to the city for access lines that are leased or otherwise provided to another person for consideration if:
(1) 
Such person is a certificated telecommunications utility by the state;
(2) 
Such person has a municipal consent from the city governing the person’s use and occupancy of the rights-of-way for the purpose of erecting, constructing, maintaining and/or operating a telecommunications system; and
(3) 
Such person has furnished the grantee adequate proof:
(A) 
That the person has obtained a municipal consent;
(B) 
That the person intends to include the leased access lines in its monthly count of such facilities to the city;
(C) 
That the person intends to remit to the city a line fee on those lines and points; and
(D) 
That the city has approved of this arrangement and has agreed not to seek from the grantee the line fees attributable to the leased facilities.
(Ordinance 98-01-19-1, sec. 5, adopted 1/19/98)
(a) 
The location and route of all facilities and transmission media placed and constructed in the rights-of-way shall be subject to the lawful, reasonable and proper control and direction of the city.
(b) 
Nothing contained in this article shall be construed to require or permit the attachment on or placement in a grantee’s facilities of any electric light or power wires or communications facilities or other systems not owned by the grantee. If the city desires to attach or place electric light or power wires, communications facilities or other similar systems or facilities in or on the grantee’s facilities, then a further separate, noncontingent agreement with the grantee shall be required. Nothing contained in this article or any municipal consent shall obligate a grantee to exercise or restrict the grantee from exercising its right to enter voluntarily into pole attachment, pole usage, joint ownership or other wire space or facilities agreements with any person authorized to operate as a public utility or a telecommunications utility or authorized to offer cable service within the city. Notwithstanding any other provision herein, the city retains all rights the city has or may have to regulate the location, routing, placement and/or installation of facilities by any person within the rights-of-way.
(c) 
The surface of the rights-of-way disturbed by a grantee in the construction or maintenance of its telecommunications system shall be restored within a reasonable time after the completion of the work to as good a condition as before the commencement of the work. Should the city reasonably determine, within one year from the date of any restoration performed pursuant to this subsection, that the surface of the rights-of-way required additional work to restore the surface to as good a condition as before the commencement of the work, then the grantee shall perform such additional work to the reasonable satisfaction of the city. The grantee shall endeavor to minimize disruptions to the efficient use of the rights-of-way by pedestrian and vehicular traffic, and rights-of-way shall not be blocked for a longer period than shall be reasonably necessary to execute all construction, maintenance and/or repair work.
(d) 
Upon request, the grantee shall remove or raise or lower its aerial wires, fiber or cables temporarily to permit the moving of houses or other bulky structures. The expense of such temporary rearrangements shall be paid by the party or parties requesting them, and the grantee may require payment in advance. The grantee shall be given not less than forty-eight hours’ advance notice to arrange for such temporary rearrangements.
(e) 
The grantee, its contractors and agents have the right, permission and license to trim trees upon and overhanging the rights-of-way to prevent trees from coming in contact with the grantee’s facilities and transmission media. When directed by the city, tree trimming shall be done under the supervision and direction of the city or under the supervision of the city’s delegated representative.
(Ordinance 98-01-19-1, sec. 6, adopted 1/19/98)
(a) 
In accordance with Texas Utilities Code, section 54.203(c), upon thirty days’ notice by the city, the grantee shall begin relocation of its facilities within the rights-of-way at its own expense to permit the widening or straightening of streets. The notice by the city shall include a specification of the new location for the grantee’s facilities along the rights-of-way.
(b) 
The city retains the right to move any facilities within the rights-of-way to cure or otherwise address a public health or safety emergency. The city shall cooperate to the extent possible with the grantee in such instances to assure continuity of service and to afford to the grantee the opportunity to make such relocation itself.
(Ordinance 98-01-19-1, sec. 7, adopted 1/19/98)
The grantee shall indemnify and hold the city harmless from all costs, expenses, and damages to persons or property arising directly or indirectly from the construction, maintenance, repair, or operation of the grantee’s facilities located within the rights-of-way found to be caused solely by the negligence of the grantee. Expenses shall include any reasonable and necessary attorney’s fees and court costs. The city shall give the grantee prompt written notice of any claim for which the city seeks indemnification. The grantee shall have the right to investigate and compromise any such claim. The grantee may, at the city’s option, provide a defense on behalf of the city to any such claim. This provision is not intended to create a cause of action or liability for the benefit of third parties, but rather this provision is solely for the benefit of the grantee and the city.
(Ordinance 98-01-19-1, sec. 8, adopted 1/19/98)
(a) 
The city may, at any time, make reasonable inquiries pertaining to the terms, conditions, rights and obligations of this article, and the grantee shall respond to such inquiries on a timely basis.
(b) 
Copies of petitions, applications, and reports submitted by the grantee to the Federal Communications Commission or the public utility commission of the state shall be provided to the city upon request.
(c) 
After reasonable notice to the grantee, the city may establish, to the extent permitted by law, such rules and regulations as may be appropriate for the administration of this article and the construction of the grantee’s facilities in the rights-of-way.
(Ordinance 98-01-19-1, sec. 9, adopted 1/19/98)
In the event this article or any tariff that authorizes the grantee to recover the fee provided for in this article or any procedure provided in this article or any compensation due the city under this article becomes unlawful or is declared or determined by a judicial or administrative authority exercising its jurisdiction to be excessive, unenforceable, void, or illegal, in whole or in part, then the city shall either adopt amendments to this article or shall adopt a new ordinance to conform to the decision of the authority, and the city and the grantee shall meet and negotiate a new municipal consent that is in compliance with the authority’s decision. In the event that the state legislature, or any other governmental entity with jurisdiction, expressly excepting the city, shall enact a method or formula for determining line fees or shall prescribe a rate or an amount of such line fees that is inconsistent with this article, then the city and the grantee shall meet and negotiate a new municipal consent that is in compliance with any such new applicable law. Unless explicitly prohibited, the new municipal consent shall provide the city with a level of compensation comparable to that set forth in this article, as long as the agreed-to compensation is recoverable by the grantee in a manner permitted by law for the unexpired portion of the term of the municipal consent.
(Ordinance 98-01-19-1, sec. 10, adopted 1/19/98)
This article shall be construed in accordance with the city charter and all applicable ordinances in effect on the date of passage of this article to the extent that they are not in conflict with or in violation of the constitution and laws of the United States or the state.
(Ordinance 98-01-19-1, sec. 11, adopted 1/19/98)
Within fourteen working days of its final passage, the city shall deliver to the grantee a properly certified copy of the ordinance granting the grantee a municipal consent. The grantee shall have thirty days, or a shorter time if agreed to by and between the city and a grantee in a municipal consent, from and after the delivery of that copy of that ordinance to file its written acceptance of that ordinance with the city secretary. Upon the filing of that acceptance, that ordinance shall take effect and be in force beginning on the effective date agreed to by the city and the grantee and set forth in the individual municipal consent.
(Ordinance 98-01-19-1, sec. 12, adopted 1/19/98)