(A) Rights-of-way fee. The permit holder shall pay to the city a rights-of-way fee that is calculated as of month-end by applying the appropriate line fee to each access line owned, placed or maintained by permit holder that is activated for use by an end-user or for another telecommunications service provider that uses permit holder’s services or facilities for the provision of telecommunications service within the city. The line fee to be applied to each access line on a monthly basis shall be:
Access Line | Monthly Fee per Access Line |
Residential | $0.75 |
Non-residential | $2 |
(B) Number of access lines. Subject to city’s agreement not to disclose this information, each permit holder must provide annually, within a reasonable time after receipt of the city’s written request, a report showing the number of each type of access line owned or placed and maintained by permit holder within the city that are activated for end-user customers and other telecommunications service providers at month’s end for each of the preceding 12 months. The city agrees that the report shall be used solely for the purpose of verifying the number of the permit holder’s access lines within the city that are activated for end-user customers and telecommunications service providers. Upon written request, the permit holder 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. For purposes of payment of fees for use of the rights-of-way, lines terminating at customer’s premises that are billed as “lifeline”, “tel-assistance” or other service that is required to be similarly discounted pursuant to state or federal law or regulation for the purpose of advancing universal service to the economically disadvantaged shall not be included in the lines upon which the fee is calculated.
(C) Annexation and disannexation. Within 30 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 agrees to furnish permit holder 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 chapter, a permit holder shall start including or excluding access lines within the affected area in the permit holder’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 permit holder is notified by the city of the annexation or disannexation.
(D) Confidential records. If the permit holder 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. Upon receipt by the city of requests for the permit holder’s confidential information, reports, documents or writings, the city shall notify the permit holder of the request in writing by facsimile transmission. The city shall request an attorney general’s opinion before disclosing any confidential information, reports, documents or writings and will furnish the permit holder with copies of Attorney General opinion requests it makes pertaining to the permit holder’s confidential information, reports, documents or writings. Upon request by the city, the permit holder shall provide assistance in preparing and submitting the request for an Attorney General’s opinion.
(E) No other fees. The payments due hereunder 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 permit holder. Further, such rights-of-way fee shall constitute full compensation to the city for all of permit holder’s facilities located within the rights-of-way, including interoffice- transport and other transmission media that do not terminate at an end-user customer’s network interface device, even though those types of lines are not used in the calculation of the rights-of-way fee.
(F) Timing of payment. The permit holder 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.
(G) Uncollectibles. The permit holder 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 chapter notwithstanding, the permit holder shall not be obligated to pay the city for any access lines for which revenues remain uncollectible.
(H) Facilities provided to other telecommunications service providers. To the extent allowed by applicable state and federal law, any telecommunications service providers that purchase unbundled network elements or other facilities for the purpose of rebundling those facilities to create telecommunications service for sale to persons within the city shall pay to the city a rights-of-way fee that is calculated as of month-end by applying the appropriate line fee, as specified in division (A) above, to each access line created by rebundling services or facilities. Such direct payment to the city is necessary because it is only the person creating the services for resale that will be able to determine the number of access lines being provided, so that the rights-of-way fee imposed herein can be applied on a non-discriminatory basis to all telecommunications service providers that sell telecommunications service within the city. Other provisions of this chapter notwithstanding, the permit holder shall not include in its monthly count of access lines any unbundled network elements or other facilities provided to other telecommunications service providers for rebundling into telecommunications services, if the telecommunications service provider that is rebundling those facilities for resale has provided a signed statement to the permit holder that the telecommunications service provider is paying the access line fees applicable to those rebundled services directly to the city. If permit holder provides a copy of the signed statement to the city, then permit holder is absolved of all responsibility for the line fees payable on the telecommunications service, unbundled network elements and other facilities rebundled for the creation of telecommunications service for sale within the city.
(I) Fee application to leased facilities. Pursuant to Tex. Utilities Code § 54.206, a permit holder may collect the line fee imposed by the city pursuant to this chapter through a pro rata charge to the customers in the boundaries of the city, including any other persons who are leasing, reselling or otherwise using the permit holder’s access lines to provide telecommunications service. With respect to any person leasing, reselling or otherwise using a permit holder’s access lines, if a permit holder 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 person using the access lines provides to the permit holder sufficient written information to determine the correct line fee. If a person provides sufficient written information for the application of the line fee, permit holders may bill the person on the basis of the information provided. The permit holder shall provide to the city any information regarding the locations to which it is providing service or facilities for use by another person for the provision of telecommunications service to end-user customers, so long as city first obtains written permission of such other person for permit holder to provide the information to the city. Any other provision of this chapter notwithstanding, however, a permit holder shall not be liable for underpayment of line fees resulting from the permit holder’s reliance upon the written information provided by any person that uses the permit holder’s service or facilities for the provision of telecommunications service to end-user customers.
(J) Public street crossing fee.
(1) Any person whose facilities are located within the city but are not used to provide telecommunications service within the city by means of access lines upon which the line fees are applicable shall pay the city an annual public street crossing fee of:
(a) Two dollars and fifty cents per linear foot for each diameter inch or less of underground conduit or wire and for each 0.250-diameter inch or less of aerial wire that is in the public rights-of-way per annum; and
(b) One thousand dollars for the first street crossing and $250 for every street crossing thereafter.
(2) The public street crossing fee shall be due on July 15 of every year, prorated as applicable. A report as required by the City Manager shall be provided with each annual payment showing the calculation of the payment, including the length of the network and whether it is overhead or underground, as applicable, and number and name of each street crossing. The purpose of the public street crossing fee is to compensate the city for the reasonable rental value of the rights-of-way and to recover the administrative cost in monitoring and enforcing the provisions of this chapter. Each municipal permit ordinance requiring payment under this section shall provide that such fee may be adjusted once every two years to properly reflect the reasonable rental value of the rights-of-way and administrative cost to the city.
(Ord. 99-05, passed 6-15-1999)