1991-04-08 Regular Meeting - Laserfiche WebLink

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` ~~~ ~~ ~~ ~ ~ J~ ~~ -~ March 18, 1991 MEMORA~'~TDUM l~ • ~~' T E X A S A4UI~ICIPAL LEAGUE TO: TML Member Cities ~ ~~ =~~R 2 ~ ycc:t 1~ ~ ,~ ~~~ ~u~EiS C 0~ rE~''E_~ FROM: Frank Sturzl, Executive Director ~,( ~.~`~ SUBJECT: Telephone Franchise Fees As you may be aware, a Telephone Franchise Steering Committee was recently formed because a number of cities were faced with expiring telephone franchises. Although several cities had already started negotiations with Southwestern Bell or other telephone companies, it was felt they were having very little success. Specifically, the goals the Committee has set for itself are to: • Act as a clearinghouse for information; • Serve as a central point of negotiation for cities; • Develop a base franchise model for possible use by individual cities; • Provide further assistance to cities in the adoption of franchise ordinances. During the last several months, the Committee has evaluated the Southwestern Bell proposal and concluded that it falls short of properly addressing concerns of the vanous cities. The Committee determined that it is imperative to retain both legal and auditing services to respond to the proposal by Southwestern Bell. It was concluded that legal services are needed due to Southwestern Bell's contention that a franchise is not legally required from cities. Several city officials feel that the proposal may in fact be an attempt to eventually have franchise fees invalidated by a court. If this were to occur, the Committee is concerned it could possibly have significant impact on other franchise fees received by cities. It was also determined by the Committee that the services of a utility rate auditor would also be needed. You will find enclosed a sample resolution. The Committee asks that you consider adoption of this resolution. If you adopt it, please return it to TML by April 30, 1991. 211 East Seventh. Suite 1020 • Austin, Texas 78701-3283 • (512) 478-6601