TELEPHONE COMPANY
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CJr'r CLERK
ORDINANCE NO. 1873
AN ORDINANCE GRANTING TO GENERAL TELE~
PHONE COMPANY OF FLORIDA, A CORPORATION
UNDER THE LAWS OF FLORIDA, ITS SUCCESSORS
. AND ASSIGNS, A NONEXCLUSIVE FRA.1'\JCHISE TO
USE THE PUBLIC STREETS, ALLEYS, HlGHWA YS,
WATERWA YS, BRIDGES, EASEMENTS, AND OTHER
PUBLIC PLACES OF THE CITY OF CLEARWATER,
FOR THE CONSTRUCTION, MAINTENANCE AND
OPERATION OF A TELEPHONE SYSTEM IN THE
CITY OF CLEARWATER: AND PRESCRIBING THE
TER.\1S AATD CONDITIONS UNDER WHICH SAlD NON-
EXCLUSIVE RIGHTS, PRIVILEGES AND FRANCHISES
MAY BE EXERCISED: AND PROVIDING AN EFFECTIVE
DATE HEREOF.
BE IT ENACTED BY THE CITY COMMISSION OF THE CITY OF. CLEAR WATER,
FLORIDA
Section 1 (a). That the City of Clearwater (hereinafter referred to
as the "City") hereby grants to General Telephone Company of Florida
(hereinafter referred to as the "Company"), a Florida corporation, its suc-
cessors and assigns, the nonexclusive right, privilege and franchise to lay,
erect, construct, operate and maintain in, on or upon any and all of the .
public streets, alleys, highways, waterways, bridges, easements and other
public places of the City, as they now exist or may be hereafter constructed,
opened, laid out or extended within the present limits of the City, or in such
territory as may be hereafter added to, consolidated or annexed to the City,
any and all such conduits, cables, poles, wires, supports and other structures
as may be reasonably necessary for the construction, maintenance and opera-
tion of a telephone system for the public and private use of the inhabitants of
the City, . subject to the terms and conditions herein under this Ordinance
granting this nonexclusive franchise to the Company.
(b) This nonexclusive franchise granted by the City to the Company
shall be for a period of fifteen (15) years from the effective date of this
Ordinanc e.
Section 2. The streets and other facilities of the City to be used by
the Company in the operation of the telephone system within and beyond the
corporate liIT'..its of the City are valuable public properties acquired
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and maintained by the City at great expense to municipal taxpayers, and the
right to use said streets and facilities is a valuable property right without
which the Company would be required to invest substantial capital in rights-
of-way costs and acquisitions. The Company specifically understands and
agrees that the awns of money to be paid by the Company to the City under
Section 3 hereof are compensation and consideration for the use by the
Company of the City streets and other ways for the installation, maintenance
and operation of the Company's telephone system facilities and are not in
lieu of taxes or any other charges or fees as allowed by the Florida
Constitution, the general or special laws of the State of Florida, or any
other ordinances of the City. The Company shall at all times continue to
be subject to public service taxes (Section 166.231, Florida Statutes), ad
valorem. taxes (Section 166.211, Florida Statutes), and such other taxes,
charges or fees as may be lawfully authorized by the Florida Constitution,
the general or special laws of the State of Florida, the provisions of the
Municipal Home Rule Powers Act (Chapter 166~ Florida Statutes) or the
ordinances of the City.
Section 3 (a).. Commencing on the effective date of this Ordinance,
the Company shall pay to the City as consideration for the grant of this
franchise a suzn of money equal to one per cent (10/0) of its gros s local service
revenues derived during each quarter of the calendar year from customers
located within the corporate limits of the City. Local service revenues are
all items now or hereafter included in the uniform system of accounts set
forth in the FCC Accounts.
Local Service Revenues
FCC
Accounts
Description
500
Subscribers I Station Revenues
501
Public Telephone R~evenues
503
Service Stations
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504
506
Description
Local Private Line Services
Other Local Service Revenues
Accounts
Such consideration shall be due at the end of each quarter and shall be
payable no later than the 20th day of the month following the end of each
such quarter; and if not received by the City within such p~riod, any
portion thereof shall draw interest at the rate of ten per cent (100/0) per
annwn from the first day after the payment period of twenty days until
paid to the City.
(b) Ii the Company agrees to payor is otherwise obligated
to pay to any other municipality more than one per cent (1 %) of its revenues
as consideration for a franchise, which overage is not passed on to the.
subscribers of the Company located in such municipality, the Company
shall, on the effective date of such payment,' also begin paying such greater
percentage to the City. If the Company is permitted by the Florida Public
Servi.ce Commission, under a tariff filed with such conunis sion, to pay
a percentage greater than 1 % of the gross local service revenues derived
from subsc;-ibers of the Company in a municipality as consideration ~or a
franchise, without the requirement that such overage be passed on to the
subscribers of the Company located in such municipality, then on the
effective date of such tariff, the Company shall begin paying such greater
percentage to the City. In such event, the Company agrees to furnish to
the City within thirty (30) days of the effective date of any such franchise,
agreement, amendment to franchise, or Florida Public Service Conunission
rule or regulation, a copy of such franchise, agreement, amendment
to franchise, or rule or regulation. If an appropriate Federal authority
issues an order while this Ordinance is in effect authorizing the payment by a
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telephone company of a percentage of gross interstate toll revenues as con-
sideration for a municipal franchise, and this order is upheld 'on appellate
review, the City shall have the right to notify the Company to this effect and
to demand that an amendment to this agreement be negotiated between the
City and the Company covering this area of consideration.
(c) The City, or its designated representative, shall have the right
during the life of this franchise to examine the books, records and accounts
of the Company, at its principal offices in the City of Tampa, to detennine
the accuracy of the gross local service revenues upon which this franchise
payment is based; provided, however, that the Company shall be obligated to
maintain its billing records only for the period of time required by the Florida
Public Service Commission ~nd that any examination conducted after such
period shall be confined to the records then available.
Section 4 (a). The Company shall give perpetual service, days,
nights, Sundays and every day, strikes and emergency causes excepted, in
accordance With normal accepted telephone industry practices as regulated
by the Florida Public Service Commission.
(b) The Company shall construct, maintain and operate during the
life of this franchise a complete telephone system meeting reasonable techno-
logical standards and developments aoq provide the subscribers in the City
with service as efficient and complete as that provided to any other community
serviced by the Company. Compliance or noncompliance of the Company with
this subsection shall be detennined by the Florida Public Service Commission;
however~ nothing contained herein shall abrogate any right that the City may
ha ve to institute legal action.
(c) The Company shall, upon request, make available at its principal
office in the City of ClearWater a copy of its annual repon to the Florida Public
Service Commission and a copy of all telephone service repons, or other public
repons, required to be filed with the Florida Publi,c Service Commission. Upon
request by such representative, the Company shall supply to the City a copy of
any such report.
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(d) The Company shall, upon request, present and explain to the
City Commission any proposal for a change in subscribers' ra,tes, or rate
levels, or service within fifteen (15) days after the submission of such pro-
posal to the Florida Public SeFVice Commission.
(e) The Company, at the direction of the City, shall move or
relocate such poles, underground cables, conduits or wires, 'including
changing the height of such wires, as may at any time interfere with any of
the work of the City, or that shall unreasonably hamper or restrict the use
of any public street, alley, highway, waterway, bridge, easeme~t or other
public place in the City. All cost and expense of such move or relocation
shall be paid or borne by the Company without any cost or expense to the City.
(f) Should it become necessary in the installation of any facilities
by General Telephone of Florida to cut or alter the paving in any street,
alley, sidewalk or other public place or right-of-way of the City of Clearwater,
Florida, the Company shall first inform the City in writing of the necessity
for' such alteration and shall, prior to making any cut or alteration, obtain
a permit from the City to perform such work. The Company agrees to
. replace the paving or other material so cut or altered at its expense and to
place the location or right-oi-way so disturbed, or altered, or changed,
insofar as practical, in the same condition as existed prior to such work.
(g) The City and the Company will meet to establish guidelines as
to whether additional permits will be verbal or written for construction
activities other than described below. No major pole lines shall be erected
or placed, and no conduits or cables laid, or pay telephone facilities installed,
or trees removed, on public rights-oi-way without first obtaining a permit
from the City Manager or his designate, which permit shall set out the place
where the poles, condUits, cables, or pay telephone facilities are to be placed
or installed. Any major pole lines, conduits or cables laid, installed or
erected without first having o.btained the permit hereinbefore provided for
shall be removed within fifteen'(lS) days of written notice by the City to
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remove the same, and in default of compliance with such notice, the poles,
conduits or cables may be removed by order of the City Manager or his
designate, and the cost of removal shall be borne and paid by the Company.
If the Company fails to pay for such removal, the City, at its option, may cancel
this franchise.
(h) Such coin telephone facilities as the City determines and the
Company agrees are necessary for public safety purposes shall be installed
on City properties (pools, parks, buildings, etc.) at the City's request, at
no cost-to the City, and with no minimwn charge; all installations shall be
of the type designated by the City and-made in a neat and workmanlike manner.
Allwiring shall be in conduit and exposed protectors shall not be used; the City
will asswne the energy cost of illwninating the phone booths and will arrange
with Florida Power Corporation to make the neces sary connections without
the necessity of a meter.; in areas where other- facilities are underground or
the City deems it advisable, the telephone and lighting service shall be
installed-underground; the City shall receive fifteen per cent (15%) of the
gross receipts of all phone booths installed on City property; any existing
installations will be removed or relocated at the City's request.
(i) Underground distribution facilities in new areas and subdivisions
shall be installed in accordance with Rules and Regulations' for Underground
Telephone Distribution Facilities established from time to time by the FlorIda
Public Service Commission. The Company recognizes the advantages of
underground construction and within six (6) months from the effective date
of this franchise will present to the City its planning for the undergrounding
of primary distribution facilities within the City. This plan will have as its
objective the undergrounding of such facilities within a period of twenty (20)
years. It is understood, however, that this plan will be the goal or objective
of the Company and that deviations may occur from time to time as a result
of economic feasibility or the joint occupancy practices or programs
involving other utilities occupying the rights-oI-way. Should any change or
alteration of this plan be made by the Company which, upon review at the
request of the City, the Florida Public Service Commission determines to be
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unjustified either from the standpoint of economic feasibility or the 'joint
occupancy practices and programs involving other utilities occupying the
rights-of-way, then the City shall have the right, at its option, to tenmnate
this agreement. The Company agrees to periodically review, in concert with
the City and other utilities, the implementation of its plan as it relates to the
City's master plan of undergrounding all existing facilities. Nothing contained
herein sball abrogate the right of the City to adopt any ordinance that it con-
siders appropriate relating to the undergrounding of utility facilities and the
City reserves any and all rights it may have to adopt such an ordinance.
(j) The City shall ba ve access at any time to the manholes of the
Company in which the City has facilities, upon giving notice to the Company.
The City, in the proper exercise of its. municipal powers and duties with
respect to its public streets and other ways, shall have access to all manholes
of the Company in such streets and other ways; provided, however, unless the
. circumstances required immediate access, the City shall notify the Company
prior to such access and, in any event, shall notify the Company promptly of
any manholes that have been entered.
Section 5. The Company shall use all proper and reasonable care in
connection with any work which it may do in, over, under and across any
street, alley, highway, waterway, bridge, easement or other public place
or right-of-way of the City so as to prevent harm, damage, or injury to
persons or property therefrom, and the Company shall save the City harmless
from all liability or damages resulting from injury to persons or property by
reason of any work which it may undertake or do in, over, under or across
any street, alley, highway, waterway, bridge, easement or other public
place or ;ight-of-way of the City; provided, however, that the City, within
fifteen (15) days after notice of any claim against it arising out of any act or
default of the Company, shall give notice in writing of said claim so made
against it to th~ Company. Failure to give notice as is required by this section
sball not, however, constitute a waiver by the City of any liability of the
Company.
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Section 6. The franchise hereby granted shall not be leased,
assigned, or otherwise alienated or disposed of except with the express
consent of the City Commission. of the City to such lease assignment,
alienation or other disposition prior to the making of same; provided,
however, that nothing herein contained shall be so construed as to prohibit
the Company from leasing, assigning or otherwise alienating and trans-
ferring this franchise in connection with the lease or sale of its entire
system or upon its merger and consolidation with any other corporation
engaged in a similar business, nor as prohibiting the pledging or mortgaging
of such franchise in connection with all the physical property owned and used
by it in the operation of its telephone system for the purpose of securing
payment or moneys borrowed by the Company. The express consent of the
City is hereby given to each, any and all of the transactions enumerated in
the above proviso.
Section 7. In the event any action shall be instituted or prosecuted..
directly or indirectly, by the Company, or by any of its stockholders or
creditors, to set aside, amend or to have declared void any of the provisions,
obligations, terms or conditions of this franchise, or in the event the Company
violates or defaults in the perfonnance of any of the provisions of this Ordin-
ance, and such default continues for a period of ninety (90) days after receipt
of wri tten notice of such default, or legal or adminisrrati ve proceedings to
resolve such. default are not commenced within such ninety days, the City,
through its City Commission, may, at its option, forthwith declare a forfeiture,
annulment and termination of this franchise and may institute such appropriate
legal proceedings as may be necessary to enforce such forfeiture, anmlment
or termination.
Section 8. Neither this franchise agreement as a whole, nor any of
its parts, portions or terms, shall be constrUed as granting or intending to
grant to the Company a franchise to use the City's streets, alleys, highways,
waterways, bridges, easements and other public places of the City or the
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Company's facilities therein for cable television; but nothing herein shall
preclude the Company fromentertng into a contract for the use of its facilities
with any person, firm, partnership or corporation which hereafter may be
granted a franchise for cable television by the City of Clearwater.
Section 9. Under Section 148 of the City Charter, the City of Clear-
water shall have the right at any time during the life of this franchise to
purchase all of the property of General Telephone Company of Florida used
by it in connection with this franchise and grant situate within the corporate
limits of said City, together with any extensions thereof extending beyond
the corporate limits of said City which are appurtenant to and directly con-
nected with the Company's local distribution system through any central office
operated by it situate within the corporate limits of said City, and any property
rights connected with any such property, including all contracts for service
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in connection therewith, fairly and reasonably made in good faith by said
Company prior to the date of such purchase, at a reasonable valuation of such
property and property rights desired to be purchased, to be fixed by arbitration
as may now or hereafter be provided by law, in the event the Company and
the City shall be unable to arrive at a valuation agreeable to both parties.
Nothing herein contained shall be so constrUed as to prevent the City from
acquiring such property and property rights by condemnation proceedings or
in any other lawful manner, the methcxis of acquisition herein mentioned being
in the alternative. But in the event of the acquisition of such property by any
. method, the City shall become responsible for and shall assume the perform-
ance of all bona fide contracts entered into by said Company, its successors
'or assigns, prior to the date of such acquisition. In the event said City shall
hereafter acquire such property by purchase, condemnation or any other
method, this grant and franc~se shall immediately terminate as of the date
of the conclusion of such transaction. The City in no way surrenders any
general powers it may now have or may hereafter have or acquire over the
use of the streets, avenues, alleys and public places within its limits by the
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Company, or jurisdiction and control over such matters and things. Without
derogation of the right of purchase or other right set out above, as contained
in Section 148 of the Clearwater City Charter, the Company has agreed to the
inclusion of Secdon 9 in this franchise because of a requirement imposed on
the City by Section 148 of the City Charter. The Company, however, reserves
the right to challenge any such acquisition throogh any proper legal means,
and the execution of this franchise shall not prevent the Company from raising
any arguments against such acquisition.
Section 10. The Company shall signify its acceptance of the grant
of this franchise in writing within thirty (30) days from the da~e this Ordinance
becomes law; and such acceptance by the Company in writing shall be made
and forwarded to the City Clerk of the City of Clearwater, City Hall, Clear-
water, Florida. The acceptance of this franchise in writing by the Company
isa condition precedent to this franchise and grant taking effect.
Section 11. All ordinances or parts of ordinances not specifically
in conflict herewith are hereby continued in fUll force and effect, but all
ordinances or parts of ordinances in conflict herewith are hereby repealed.
It is agreed and understood that Ordinance No. 625 of the City, dated October
6, 1952, is repealed as of January 1, 1977.
Section 12. This ordinance granting a franchise to the Company
shall be published and pOSted as provided by law and shall take effect retro-
actively as of January 1, 1977 (which is the termination date of the previous
franchise between the parties as per Section 11 above); provided, however,
this Ordinance shall become effective only upon the wrttten acceptance of the
Company as provided in Section 10 hereinabove.
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Section 13. Should any part or provision of this ordinance be declared
by a court of competent jurisdiction to be invalid, the same shall not affect
the validity of the ordinance as a whole, or any part thereof other than the
part declared to be invalid.
Section 14. Notice of the proposed enactment of this ordinance has
been properly advertised in a newspaper of general circulation in accordance
with Chapter 166.041, Florida Statutes.
PASSED ON FIRST READING AS AMENDED
January 18. 1979
PASSED ON SECOND AND FINAL
READING AND ADOPTED
AS AMENDED
February 1. 1979
/s/ Charles F, LeCher
Mayor- Cornmis sioner
Attest:
/ s / Lucil~e Williams
City Clerk