05-11-95-C-10 - Resolution - 05/11/1995RESOLUTION NO. 5-11-95-C-10
A RESOLUTION AUTHORIZING THE PARTICIPATION OF THE CITY OF COLLEGE
STATION, TEXAS IN ACTIONS TO BE FILED IN THE STATE DISTRICT COURT TO
COLLECT DELINQUENT FRANCHISE FEES FROM GENERAL TELEPHONE
COMPANY OF THE SOUTHWEST ("GTE") AND IN AN ACTION PENDING WITH THE
PUBLIC UTILITY COMMISSION TO SET ASIDE AN ILLEGAL AUTOMATIC "PASS
THROUGH" TARIFF OF GTE; AUTHORIZING THE EXPENDITURE OF FUNDS FOR
ATTORNEY AND EXPERT WITNESS FEES; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, Southwestern Bell Telephone Company ("Bell") and 57 cities
served by Bell have reached a proposed settlement worth over $27.5 million in litigation
concerning whether or not a local telephone exchange company must include in its
gross receipts, for franchise purposes, revenues received from long distance carriers
for access to local telephone lines; and
WHEREAS, many cities, including College Station, served by General
Telephone Company of the Southwest ("GTE"), have franchise agreements setting
franchise fees for the use of city right-of-way based on a percentage of the gross
receipts collected by GTE within the corporate limits of such cities, similar to the
franchise agreements litigated in the Bell case; and
WHEREAS, certain cities, including the City of Denton, Texas, desire to pursue
the collection of delinquent franchise fees owed by GTE and have retained the Austin
law firm of Casstevens & Casstevens to proceed with actions before the Public Utility
Commission and State District Court, to recover such fees without burdening taxpayers;
and
WHEREAS, a consolidated action by cities with franchise fees based upon
gross receipts could reduce attorney and expert witness fees which would normally
result from a duplication of effort; NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION,
TEXAS:
SECTION I. That the City of College Station agrees to participate with other
similarly situated Texas cities in the GTE system to pursue and action (1) before the
Public Utility Commission to set aside an illegal automatic "pass through" tariff of GTE,
and (2) to join Denton in filing an action in State District Court to collect delinquent
franchise fees.
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SECTION II. That the City of College Station agrees to contribute two dollars
for each individual residing within its corporate limits, based on the 1990 U. S. census
(except for such portion of its population that may not be residing within the GTE
system), to underwrite the cost of legal and expert witness fees to be expended on
behalf of the cities in this matter, one dollar being due on July 1, 1994, and the other
dollar, if assessed, being due and payable on the date the Steering Committee
authorizes such assessment.
SECTION III. That G►enn Schroeder, or his designee (hereinafter, "Delegate")
may participate on the Steering Committee of GTE Cities (with franchise fees based on
a percentage of gross receipts) and is authorized to receive notices concerning
Steering Committee activities at the following address:
Name/Title: Glenn Schroeder
Executive Director of Fiscal and Human Resources
City/Address City of College Station, Texas
1101 Texas Avenue
P 0 Box 9960
College Station, Texas 77842-0960
Telephone: (409) 764-3552 Fax: (409) 764-3571
SECTION IV. That the City Manager is authorized to take those steps
reasonable and necessary to comply with the intent of this resolution.
SECTION V. That this resolution shall take effect immediately from and after
its passage.
PRESENTED AND PASSED on this the 11 day of May, 1995 at a regular meeting of
the City Council of the City of College Station, Texas.
ATTEST:
CITY SECRETARY
BY:
ket-
APPROVED AS TO FORM:
CITY ATTORNEY