2011-180s:Uegallour documentslordinances1111franchise compensation.doc
ORDINANCE NO. 2011-180
AN ORDINANCE AMENDING ORDINANCE NUMBER 2001-406 OF THE CODE OF
ORDINANCES OF THE CITY OF DENTON, TEXAS, RELATING TO COMPENSATION
PAID TO THE CITY FOR USE AND OCCUPANCY OF PUBLIC RIGHTS-OF-WAY BY
PROVIDERS; PROVIDING A SAVINGS CLAUSE; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, Article VIII of Chapter 26 of the Code of Ordinances of the City of Denton
authorizes the City Council to establish, as compensation for the rights and privileges conferred
by a franchise, that provider shall be required to pay to the City, each quarter, a sum of money
equal four (4) percent of the provider's gross revenues; and
WHEREAS, the City Council deems it in the interest of the City to increase the
compensation to be equal to and no less than five (5) percent of the provider's gross revenues or
any other legally permissible charge as the City Council may determine by ordinance or by
contract; and
WHEREAS, each quarterly payment required by this Article and the franchise shall be
equal to and no less than five (5) percent of the preceding quarter's actual said gross revenues or
any other legally permissible charge as the City Council may determine by ordinance or by
contract; and
WHEREAS, the City Council finds that the fees established by this Ordinance are
reasonable and in the public interest; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings and recitations contained in the preamble of this Ordinance
are incorporated herein by reference.
SECTION 2. The City Council hereby establishes that Article VIII, Section 26-242(a)
and (b) should read as follows:
(a) As compensation for the rights and privileges conferred by a franchise granted
pursuant to this article, Provider shall be required to pay to the City, each quarter,
a sum of money equal to and no less than five percent (5%) of the Provider's
Gross Revenues as defined herein or any other legally permissible charge as the
City Council may determine by ordinance or by contract.
(b) Each quarterly payment required by this article and the franchise shall be equal to
and no less than five percent (5%) of the preceding quarter's actual said Gross
Revenues or any other legally permissible charge as the City Council may
determine by ordinance or by contract. Each payment shall be due and payable
on or before the last business day of the first month following the end of the
preceding quarter by electronic funds transfer or by other means that provide
immediately available funds to the City on the day the payment is due. These
payments (insofar as the city has legal power so to provide and agree) shall be in
s:\legallour documentslordinances1111franchise compensation.doc
lieu of, and shall be accepted as payment for all of provider's obligations to pay
other charges for the rental of the public rights-of-way, franchise taxes, or other
taxes of every kind, save and except ad valorem taxes, sales and use taxes, special
taxes and assessments for public improvements, and any fees associated with the
use of city-owned poles.
SECTION 3. S
subsections, paragraphs,
in full force and effect.
�ve and except as amended hereby, all the provisions, sections,
sentences, clauses, and phrases of the Code of Ordinances sha11 remain
SECTION 4. This Ordinance shall become effective immediately upon its passage and
approval.
L�
PASSED AND APPROVED this the �_ day of , 2011.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY: -.
APPR ED AS O LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:
Page 2
, MAYOR