Memorandum

City of Lawrence

Legal Services Department

TO:	David L. Corliss, City Manager
FROM:	Toni Ramirez Wheeler, Interim Director of Legal Services
CC:	Debbie Van Saun, Assistant City Manager
Date:	January, 31 2007
RE:	Ordinance Adjusting Franchise Fee for Southwestern Bell Telephone, L.P., d/b/a AT&T Kansas and Ordinance Establishing Right-of-Way Use Regulations

As part of the 2007 City of Lawrence Budget, the City Commission authorized the preparation of ordinances phasing in amendments in the franchise fees paid by utility providers in the City. 

Attached please find Ordinance No. 8076 which amends the franchise fee Southwestern Bell Telephone, L.P., d/b/a AT&T Kansas pays to provide local exchange service within the City.  Currently, AT&T Kansas pays two percent (2%) of gross revenue from local exchange telecommunications service.  Under the proposed ordinance, AT&T Kansas will pay four percent (4%) of gross revenue through June 30, 2007.  On and after July 1, 2007, the fee will increase to five percent (5%) of gross revenue for local exchange telecommunications service.  The fee modification will be effective 90 days after the effective date of the ordinance.

Ordinance No. 8073 enacts Chapter 16, Article 9A of the City Code.  It establishes right of way use regulations for those franchisees whose franchise ordinance contains no right-of-way use provisions, or which contain provisions less stringent than the use regulations contained in the attached ordinance. 

The AT&T Kansas franchise ordinance contains no right-of-way use regulations.  Therefore, its use of the right of way will be regulated pursuant to Chapter 16, Article 9A established in Ordinance No. 8073.    Adoption of Ordinance No. 8073 ensures that all utilities operating in the City rights-of-way comply with City policies and relevant code provisions.

Staff recommends the adoption of the ordinances on first reading.