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ISSUEN0.19

Request for approval of Bill No. 2016- . An ordinance relating to the City of Santa Fe Telecommunications Facilities In The Public Right-of-Way Ordinance; amending subsection 27-2.1 SFCC 1987 to establish legislative findings; amending subsection 27-2.3 SFCC 1987 to repeal the definition of "gross revenue" and establish a new definition for "gross charge"; amending subsection 27-2.5 to repeal the fee structure and establish an infrastructure maintenance franchise fee; and making such other changes as are necessary to carry out the intent of this ordinance. (Marcos Martinez) (Councilor Ives)

Public Utilities Committee - 9/7/2016 Public Works Committee 9/12/2016 City Council- 9/14/2016 (Request to Publish) Finance Committee- 9/19/2016 City Council- 10/13/2016

PUBLIC UTILITES COMMITTEE ACTION: PUC recommended postponing to 10/5/2016 PUC meeting. SPECIAL CONDITIONS OR AMENDMENTS:

STAFF FOLLOW UP: VOTE: FOR AGAINST ABSTAIN

COUNCILOR RIVERA, CHAIR X

COUNCILOR MAESTAS X

COUNCILOR TRUJILLO X

COUNCILOR LINDELL X

COUNCILOR VILLARREAL X

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City of Santa Fe, New Mexico LEGISLATIVE SUMMARY

Bill No. 2016-37 Telecommunications

SPONSOR(S): Councilor Ives

SUMMARY: The proposed bill amend several sections of Chapter 27 SFCC 1987 to add, amend and delete various definitions, repeal the previous fee structure that was struck down in federal court, and to establish an infrastructure maintenance franchise fee whereby the city can charge franchise fees to telecommunication service providers in exchange for access to the public right-of-way.

PREPARED BY: Jesse Guillen, Legislative Liaison

FISCAL IMPACT: Yes

DATE: August 24, 2016

ATTACHMENTS: Bill FIR

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CITY OF SANTA FE NEW MEXICO

BILL NO. 2015-37

INTRODUCED BY:

Councilor Peter N. lves

10 AN ORDINANCE

11 RELATING TO THE CITY OF SANTA FE TELECOMMUNICATIONS FACILITIES IN

12 THE PUBLIC RIGHTS-OF-WAY ORDINANCE; AMENDING SUBSECTION 27-2.1 SFCC

13 1987 TO ESTABLISH LEGISLATIVE FINDINGS; AMENDING SUBSECTION 27-2.3 SFCC

14 1987 TO REPEAL THE DEFINITION OF "GROSS REVENUE" AND ESTABLISH A NEW

15 DEFINITION FOR "GROSS CHARGE"; AMENDING SUBSECTION 27-2.5 TO REPEAL

16 THE FEE STRUCTURE AND ESTABLISH AN INFRASTRUCTURE MAINTENANCE

17 FRANCffiSE FEE; AND MAKING SUCH OTHER CHANGES AS ARE NECESSARY TO

18 CARRY OUT THE INTENT OF TffiS ORDINANCE.

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BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SANTA FE:

Section 1. Subsection 27-2.3 SFCC 1987 (being Ord. #2010-14, §5, as amended) is

amended to ordain, repeal and amend the following definitions:

Bad Debt means any portion of a debt that is related to a sale of telecommunications at retail.

for which gross charges are not otherwise deductible or excludable, that has become worthless or

uncollectible as determined under applicable federal income tax standards.

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1 Department means the department of public works.

2 Gross charge means the amount paid to a telecommunications retailer for the act or privilege

3 of originating or receiving telecommunications in the city, and for all services rendered in connection

4 therewith, including cash, credits, services, and property of every kind or nature, and shall be

5 determined without any deduction on account of the cost of such telecommunications, the cost of the

6 materials used, labor or service costs, or any other expense whatsoever. In case credit is extended, the

7 amount thereof shall be included only as and when paid. "Gross charge" for private line service shall

8 include charges imposed at each channel point within the city, charges for the channel mileage

9 between each channel point within the city, and charges for that portion of the interstate inter-office

10 channel provided within the city. "Gross charge" shall not include:

11 A. Any amounts added to a purchaser's bill because of a charge made under:

12 (1) the fee imposed by this chapter;

13 (2) additional charges added to a purchaser's bill under § 63-9D-8, 63-

14 9F-12, or 63-9H-6, NMSA 1978;

15 (3) the tax imposed by the Telecommunications Excise Tax Act;

16 ( 4) the tax imposed by section 4251 of the Internal Revenue Code;

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B. Charges for a sent collect telecommunication received outside of the city;

c. Charges for leased time on equipment or charges for the storage of data or

information or subsequent retrieval or the processing of data or information intended to

change its form or content. This definition applies, but is not limited to, the use of calculators.

computers, data processing equipment, tabulating equipment, accounting equipment or voice

mail systems, and also includes the usage of computers under a time-sharing agreement;

D. Charges for customer equipment, including equipment that is leased or rented

by the customer from any source, but only if the charges are disaggregated and separately

identified from other charges;

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1 E. Charges for telecommunications and all services and equipment provided in

2 connection therewith between a parent corporation and its wholly owned subsidiaries or

3 between wholly owned subsidiaries, but only to the extent that the charges between the parent

4 corporation and the wholly owned subsidiaries or between the wholly owned subsidiaries

5 represent an expense allocation among the entities and not the generation of profit other than

6 a regulatory required profit for the corporation rendering the telecommunications and related

7 services;

8 F. Bad debts; provided, however, if any portion of a debt deemed to be bad is

9 subsequently paid, the retailer shall report and pay the infrastructure maintenance franchise

10 fee on that portion of the debt during the reporting period in which the payment is made;

11 G. Charges paid by inserting coins in coin-operated telecommunications

12 devices; or

13 H. Charges for telecommunications and all services and equipment provided to

14 the city.

15 In addition, retailer access charges, right of access charges, charges for use of intercompany facilities,

16 and all telecommunications resold in the subsequent provision and used as a component of, or

17 integrated into, end-to-end telecommunications service shall not be included in gross charges as sales

18 for resale. Gross charges include charges for telecommunications and all services and equipment

19 provided to any governmental entity other than the city.

20 {GF6SS 1'¥!¥Cl'I!UC meafi:S:

21 A 1 .t. Ineludes the following types of pro:vicler re=venues der:P.·ed from the provision of

22 teleeommanieations services to customers Vlithin the city served from telecommanieation facilities

23 loeatetl in the J*Ihlic rights of way:

24 (1) Reearring, nonreearring and usage charges paid by eustomers for

25 teleeommunioations or other services provided through ase of the teleeommanieatioos

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network;

(2) Revenaes reeePied from aeeess fees, intereonneetion fees, or any otker fees

relating to or arisiDg oat of the ase of the teleeommooieatioDS Detvlork (iaelading the

faeilities and equi13mefl:t of saeh network) by any }3ersofl: 13rovidiDg eommereial mobile radio

serviee, eellalar, persoDal eommooieations serviee, or other eommooieations serviee;

(3) IDterlata (loeal aeeess tnmsit area) toll revefl:ae;

(4) lfl:tralata toll re:venae;

(5) Bqai13mefl:t lease and sale revenae Dot to inelade rEfi'-renue from the sale or

lease of equi}3ment that is readily available iD the eoDsamer retail market;

(6) lDstallatioD aDd serviee fees;

(7) Data trans}3ort or Detwork eharges;

(8) Any amooots eolleeted by a fJFO"lider from its eastomers deDomiDated as

reimaarsemefl:t for eKJ:JeDSes of eofl:stmetion, eEJai}3mefl:t and related e~q>enses 13aid by

fJFO"lider for the aefl:efit of its easterners; or

(9) Paymefl:ts reeeived by a }3rovider from aay federal or state ageDey or other

earriers }31:lfsaant to afly universal senriee fufl:d reEJairemefl:t.

B. BX:elades the follo"•Ying types of re¥eooe derived from the provisiofl of

teleeommooieatiofl:S serviees to oostomers vrithia the eity limits:

( 1) Proeeeds from the sale of bonds, mortgages, or other e=vicleB:ee of

indebtedness, seearities or stoeks;

(2) Bad cleat write offs and eastomer ereclits;

(3) Revenue from direet advertising;

(4) Any amoants eolleetecl by a provider from its eastomers that are required to

be remitted to a federal or state ageDey as part of a ooi¥ersal serviee ft:md or other

govemmeat }3rogram;

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(5) l\mooots collected for taxes, fees or slffcharges and paid to ilie federal, state

or local gnvemmeftts;

(a) AflY franchise fee or tax; or

(7) Revenue from the sale or lease of eqaipmeHt iliat is readily available is ilie

consamer retail market.

(8) Revesue from the pro'lisios of internet access services as defised is the

federal Internet Tax freedom Act, 4 7 U.S. C. § 151, but osly to the eJt:test prohibited by la·vl.

C. Gross rtWesae as set forili abo've shall be isterpreted cossisteHt with FCC regalatioss

9 a.Hd rulisgs, aad any rel0118:Ht decision by a federal court a.Hd to the fullest extent allowed by

10 applicable la'll. AflY change in federal lav1 subsequent to the effective date of a franchise shall aot

11 affect ilie definition of gross reveooes ooless the change specifically preempts one of the componeats

12 of the defiaitioa. Gi:oss r0'lem:te shall be measlffed and moaitorea periodically b}' t:he city. l~ ... s

13 telecommunications services eontiHUe to advance a.Hd evolve, ilie definition of yoss re¥eHUes ·will be

14 read based on ilie inteat reflected iH the above list. 'N:hea a boodling of services is offered by a

15 provider that iflelud:es sen·ices iflelud:ed is yoss revenues or excluded from gross r0'leooes there .. Nill

16 be a pro rata allocation between fra:ncmse fees based services aBd aoafranchise fee categories based

17 on the provid:er's product usage rate.]

18 Public Right of Way has the meaning of§ 3-1-2(M) NMSA 197 8.

19 Sale of Telecommunications at Retail means the transmitting, supplying, or furnishing of

20 telecommunications and all services rendered in connection therewith for consideration, other than

21 between a parent corporation and its wholly owned subsidiaries or between wholly owned

22 subsidiaries, but only when the infrastructure maintenance franchise fee imposed by this chapter

23 previously has been paid to a retailer and the gross charge made by one such corporation to another

24 such corporation is not greater than the gross charge paid to the retailer for use or consumption and

25 not for resale.

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1 Service Address means the location of telecommunications equipment from which

2 telecommunications services are originated or at which telecommunications services are received. If

3 this location is not a defined location, as in the case of wireless telecommunications, paging systems,

4 maritime systems, air-to-ground systems and the like, "service address" shall mean the location of the

5 customer's primary use of the telecommunications equipment as defined by the location in the City

6 where bills are sent.

7 Telecommunications [meaas:

8 A 1 ..... AJl traasmissioas betweea or among fJOints SfJeeified by tlte aser of

9 iafurmation of the aser' s ehoosiag (•.vhetlier .. ;oiee, Yideo, or data), \Vitltoat ehange in tlte forFB

10 or eoatent of tlte iafurmatioB: as seat and received, lf.vhere saoh transmissioas are

11 aeeomJJlished ~, meaas of a teleoommanieations aet\vork.

12 B. Teleeommooieatioas shall not iaolade tlte fullowing serviees:

13 (1) Cable serviees as defiaeei ia Title 4 7, Ch&J)ter 5, Sabeh&J)ter V A of

14 the Uaited States Code, as amended (47 USC§ 521 et seq.); or

15 (2) Teleoommanioatioas serviees fJfOYided aad ased by a flHblie atility

16 as that term is defiaed at § 62 3 J(G) NMSA: 1978, or saooessor statute, fur (i) tlte atility's

17 internal system oofflffiooioatioa aeeds; aad (ii) JJrovided direetl)· or iadifeetly to its eastomers,

18 iaeladiag bat aot limited to eleetroaio meter readiag, load eoatrol demaad side managemeat,

19 flOWer quality moaitoring, aBd otlier aetPiities related to the delPief)' of eleotrieity or aatural

20 gas or vt-ater], in addition to the usual and popular meaning, includes, but is not limited to,

21 messages or information transmitted through use of local, toll, and wide area telephone

22 service, channel services, telegraph services, teletypewriter service, computer exchange

23 services, private line services, specialized mobile radio services, or any other transmission of

24 messages or information by electronic or similar means, between or among points by wire,

25 cable, fiber optics, laser, microwave, radio, satellite, or similar facilities. Unless the context

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clearly requires otherwise, "telecommunications" shall include wireless telecommunications

as hereinafter defined. The definition of "telecommunications" shall not include (a) value

added services in which computer processing applications are used to act on the form,

content, code and protocol of the information for purposes other than transmission; (b) the

purchase of telecommunications or telecommunications services by a retailer for use as a

component part of a service provided to the ultimate retail consumer who originates or

terminates the end-to-end communications; or (c) the provision of cable services through a

cable system as defined in the Cable Communications Policy Act of 1984 (47 U.S.C.A.

sections 521 and following), as now or hereafter amended, or through an open video system

as defined in the rules of the Federal Communications Commission (47 CDF 76.1550 and

following), as now or hereafter amended, or the provision of other video programming

services equivalent to services provided through a cable system, or the provision of "direct­

to-home satellite services" within the meaning of section 602 of the Federal

Telecommunications Act of 1996 (Public Law Number 104-104), as now or hereafter

amended.

Telecommunications Provider means:

A. any telecommunications retailer;

B. any telecommunications reseller that is not a telecommunications retailer; or

C. any person that is not a telecommunications retailer or telecommunications

20 reseller that installs, owns, operates or controls equipment in the public way that is used or

21 designed to be used to transmit telecommunications in any form.

22 Telecommunications Retailer or retailer or carrier means and includes every person engaged

23 in the business of making sales of telecommunications at retail as defined in this chapter.

24 Wireless Telecommunications includes cellular mobile telephone services, personal wireless

25 services as defined in Section 704(C) of the Telecommunications Act of 1996 (Public Law Number

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1 104-1 04), as now or hereafter amended, including all commercial mobile radio services and paging

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services.

Section 2. Subsection 27-2.4 SFCC 1987 (being Ord. #2010-14, §7, as amended) is

4 amended to read:

5 27-2.4 Application for Franchise.

6 A. Application Required Any person with [a] telecommunications [fae.ility]

7 infrastructure in the city's public rights-of-way as of July 5, 2010 or who proposes to construct a

8 telecommunications [facility] infrastructure in the city's public rights-of-way shall submit an

9 application to the director. The application, in a form prescribed by the director and as may be

10 modified by the director from time to time, shall expansively describe the applicant's current or

11 proposed use of the public rights-of-way.

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B. Authority of Director. The director shall have the duty to review applications

submitted under this section. The director shall review the application and shall notify the applicant

within ten (10) business days of receipt of the application on whether or not the application has been

accepted as complete or rejected. If the application has been rejected, a new application shall be

required. The director shall negotiate the terms of franchises (to the extent not prescribed in this

section) for adoption by the governing body. The director shall administer and enforce compliance

with respect to all franchises granted under this section except as specifically delegated to the land

use director as set forth in subsection 27-2.13 SFCC 1987.

C. Governing Body Action. All franchises granted under this section shall be adopted by

ordinance [following a public heariag] and shall incorporate by reference all applicable provisions of

this section. The city shall apply any modifications or amendments to this section in a manner that

does not unreasonably discriminate against any provider subject to this section. [The act of grantiag,

ameadiag, denying, or terminatiag a froochise is a legislative function within the sound disoretioa of

the go"teming body.] Prior to proceeding with a termination of a franchise granted by the governing

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1 body, the city shall comply with the alternative dispute resolution provisions of this section. Any

2 person who is denied a franchise or whose franchise is terminated shall petition the governing body

3 for reconsideration before seeking judicial remedies. The governing body shall have thirty (30) days

4 from the date of the petition to reconsider such denial or termination.

5 D. Franchise Granted Subject to compliance with this section and other applicable

6 requirements of city code, a franchise granted under this section shall authorize an applicant to use

7 public rights-of-way to provide telecommunications services.

8 Section 3. Subsection 27-2.5 SFCC 1987 (being Ord. #2010-14, §7, as amended) is

9 amended to read:

10 27-2.5 [Compeasatioa and Cha..ges] Fees; Audit.

11 [A 1 i. Fees Gln-d Charges.

12 (1) FrBflehise fee. i\s partia-l eompeasation for the ase of the paalie rights of

13 way, eaeh teleeommanieatioas serviees provider shall he suhjeet to an aBmtal fee of three

14 pereeHt (3 q~) of the pro:·lider' s gross re'leHHe or for pro:viders with teleeommaBieatioBs

15 aet\vorks aadfor faeilities ia the pablie righ-ts of :ryvay that do Bot pro,.1ide teleeommuBieatioos

16 serviees vtithin the eity three pereeat (3q~) of that portioa of the pro:vider's gross revenue

17 attriautaale to the pro¥ider's teleeommuBieatioBs aetvt'orks muller faeilities vlithiB the eity

18 and Bot limited to reyeaues derived from the provisioa of teleeommaBieatioas serviees withm

19 the eity.

20 (2) Fraaehise filiag fee. Eaeh applieant shall submit a aonrefuadahle applieatioa

21 filing fee for eaeh franehise request. The filing fee shall iaitia-lly be two thoasaad five

22 hoodred dollars ($2,500), aad may he adjusted aRftUally ay resolutioa of the go"terniag aody.

23 .Additioaa-lland ase re:rliew fees shall apply as set forth ia sabseetion 27 2.13G. SFCG 1987.

24 (3) Non monetary ooBsideratioB. UpoB matHal agreement aetween the city B:fld

25 J3rovider, a J3FO:~o'ider may 13ay ap to one pereeBt (lq~) of the annaal fee iB the form of BOB

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B.

FRoaeta-ry coosideration, iach:1ding, without liFRitatioa, aetwork capacity, cooouit, equipFReat,

or other iafrastmeture or services for use by the city for the purposes specified below. This

non moaetary coasideratioa shall be Hegotiated v1ith each pro:yider taking into accouflt the

unique characteristics of each pro:vider's serYices aad aetwork. Said consideratioR shall be

'talHed in a fair maRHer based OH the provider's actual costs, iRclHding make ready costs,

maiflteaance, aad repair charges, labor aad material costs, plus tea perc em ( 1 ()~~) as

reimb\:I:FSemeat for supervisioa aad geaeral aad adm:inistmtive costs. Further, aay HOB

monetaf)• consideratioa furnished to the city shall be for the city's pHblic and aoacommercial

purposes. Use by the city ooder subsection 27 2.5B(7)(a) SFCC 1987 belov1, shall be

incmded ia the calculatioR of noa moaetary consideration p\:I:FSHaH:t to this paragraph aloag

with aRy other use of provider facilities by the city.

(4) Permit, inspectioa, asd revievo'locatioR charges. Each prO'iider shall pay all

permit aad iaspeetioa charges related to a provider's constmetioa in the pHblic rights af way,

as assessed by the director in acoordaace with city requiremeats includiag, vlithout Iimitatioa,

Sectioa 23 2 SFCC 1987.

P·BYN'lent &jFr-tl-Hehise Fee.

( 1) Commencing the caleB dar quarter followiBg the calendar quarter ffily pualic

rights of J.va:y fraaehise becomes effeetive, paymeat of the fraachise fees and other fees due

hereooder are required to be made within forty fi:ve (4 5) days after the end of each caleadar

quarter. The fee shall be based on gross re:YeRHes received by the provider for the precediag

quarter. Such payment shall be made through an electronic deposit process as estaalished by

the eity treasurer.

(2) Ia the e:-;ent that a fee paymeat is aot received by the city OR or before the

due date set forth in this subsection or ia a franchise, or the fee owed is not fully paid, the

provider sHbjeet to the fee shall be charged a peaaky of:

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(a) Vt'lO pereent (2%,) per quarter to a maximum of tea pereeat (10~~);

(b) !merest oa the oatstaadiag ammm-t owed from the due date at aa

iaterest rate eEJl:lal to rnco pereetJ:t (2~~) above the rate for three moath federal treasury

9ills at the most reeeat Uaited States treasary departmeat sale of sueh treasury bills

ocel:lffiag prior to tke dae date of the fraachise fee paymeat.

(3) The proviaer shall ft:ln:lish to tke eity 'tVith each paytBeat of eompeRsatioa

reEJ:uired 9y this sectioR a detailed vKitteR statemeat sho,.,viRg the amol:lflt of gross feltleRue

reeei¥ed ~· the proYider v1ithia the city limit or attribl:ltable to its telecommUHieatiOHs

facilities 'NithiR the city limit, 9rokeH ol:lt 9y provider's liRe of 9usiRess fur the period covered

by the paymeat. The ci-ty treasl:lfer shall vli-tliiR a reasOBable time after suamissiOH detetmiae

the basis and aecuraey of the amouats reported. \lf:here the amoUHt paid ~, the pro¥ider is less

thaa aiaety five pereeHt (95~~) of the amouat aetaally due, the provider skall also compeasate

the city fur the eity's eosts in discovering and reco¥ermg the uRderpayment.llo'.vever, Reither

paymeat of the fee aor failure to make sue:h iw1estigatioa shall estop the e#;· ia aay way or

preveat subseEJueat iavestigatioR, eolleetioa, or retl:lm of any amouat properly dl:J:e.

(4) Ia the e"/eat that it is claimed by the eity that the amount of the fee paid for

aay ealeRaar year is iasuffieieat, or ia the e'leBt that the provider elaims that the amoUHt is

excessive, aad the parties cwmot agree, the city aad the provider s:hall follow the displ:lte

resoll:ltioa proYisioas of this seetioa.

(5) Ia the eveat that the fee or portion t:hereof set forth in any frMehise is

declared illegal, uncofl:sti-tl:J:tioaal, or Yoid for any reason 9y any court or proper authority, the

provider shallae contraetaally 9oUHd to pay the eity an amoUHt eqaal to the reasoaahle use of

the city's public rig:hts of v1ay. This sectioa, hov;e.,.·er, shall not coastitute a '.vaiver of aay

claim the provider may assert agaiast the city.

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(6) Acce:flta:Rce by the city of any payment due uader a franchise shall Hot be

deemed to be a ·waiver by the city of any breach of the froochise occurriag prior thereto, Hor

shall the aeee{)taace by the city of aey such payments preclude the city from later establishing

that a larger amouat '.Vas aetl:lally due uHder the franchise, or from collectiHg any balance due

to the city.

(7) Ia coasideratioH of the rights and privileges gra:ated by aay fra:Rchise, the

follo ... viag apply:

(a) The city shall ha'te and prO'lider shall grant to it the right and

privilege at the city's eKpense to suspead and maiftt&in l.vires and necessary coHtrol

box:es oa poles placed by the :flFO·Yider ia the public right of ·way if space thereifl is

a\railable, vlhich the city may require for fire, police, emergeHcy, or other muaieipal

purposes. All such ·wires shall be :13laced in mutaally agreed upoa locations oa the

poles or ia tae conduits so as aot to interfere '~tYith the service of the pro:o1ider aad shall

Hot pose a danger to the provider's facilities, castomers, or castomer's pro:flerty.

However, aothing ia the fraachise shall limit the prO'Iider's right to reserve conduit

space andlor pole space v1hich in its sole discretion it retaias for purposes of asswi:ng

its ability to pro'lide fu.htre services or the safety or servieiag of its facilities.

(b) City agrees, in coasideratioa of the establishment of the seA'iee and

filmishing of the facilities described in subsection 27 2.5B(7)(a) SFCC 1987, to held

the provider free and harmless from all claims or liability for damage which may

arise out of the city's operatioa of sach ... vires and control boxes. In no event shall the

city be required to f)ay aey pole attachment fees in cotmeetion with the exercise of

tae city's rights uader this subsectioB; ho'ne'ver, the fair market value of the city's ase

of provider's wires or coBtrol boxes '•Yithout recarriBg eosts shall be iacladed as part

of aoa moHetary eoBsideratioH flaid by the provider as farther pro,lided for in

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sabsection 27 2.5A(3) SFCC 1987.

(8) To facilitate the city's anneal badget process, on or before the 1st of

November and each succeeding 1st of November thereafter daring the term of any franchise

granted under this section, the provider will provide the city 'Nith an estimate of the gross

reveooe and resal:taat fee for the follovling calendar year. Nothing hereia shall preclude the

provider and the city from agreeing to a re:vised payment sehedale.

C. City's Right te Alldit.

(1) Providers shall keep complete and accurate books of accoants and records of

their business and operatioHs pursuant to an;' fraHchise graHted hereaHder ia accordance with

geaerally accepted accoootiag principles. If required by the FCC, providers shall ase tile

system of accouats atui the furms of books, accol:l:Hts, records, attd memoraHda prescribed by

the FCC in 47 CFR or its Sl:lOcessor, attd as may be further described hereia. The director may

reqaire the keeping of additioaaJ records or accol:lftts 'Nhich are reasonably necessary for

purposes of identifyin:g, accoootiag fur, and reporting gross revenue and oocollectibles for

flUrposes of my franchise. Providers shall keep their books of account and records in sach a

\vay that identification ofre'1eooes by type of serYice within the city is available.

(2) Upon reasoaable prior aotice by the city of not less than thirty (3 0) days, or

such other time as may be agreed l:lj)On by the city and the provider, the city shall ha-ve the

right to review or aaElit the proviEler's books and records in accorElance Vt'ith regularly

accepted accol:lfltiftg ana auait standards regarEling any amooots '•vflich may be ovled ander a

fmachise. This right includes the right to re'li6'.v and audit all books and recorEls of re't'eaae

aot included in the calculation of the fee paid. The city shall give writtea aotice to the

provider ofatJ.Y additional amoaat claimed to be dae to the city as a resuk of the city's r6Y;iew.

If the provider disputes the aElditional amol:lflt allegedly due to the city, if any, the Elispute

shall be determined according to the Elispme resolution pro .. ;isions of this sectioa.

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(3) Ia the eveat of an aadit, the provider shall pro'lide city specific books,

records, contracts, accouat aedes, doeHmeflts, and papers for its operatioas within the city.

(4) l\:ll such books, reeords, and aecot:tats of the pro'vider shall be retaiaed by the

provider for a period of six (e) years, ia accordance with § 37 1 3 NMSA 1978, or its

st:tecessor. The provider shall make st:teh records as are aecessary for the ci-ty to complete its

audit and be available for iflspeetioa by the city t:tpoa thirty (3 0) days aotice from the city.

(5) All at:tdits \Yill take place oa pro'lider premises .... vithia the eity of Santa Fe or

provider Vlill pay the reasoaable, doct:tmented costs reqt:tired for the at:tditor to go to provider's

offices. The city's at:tditors may re\'i~.v all directly relevant materials aad may melEe copies of

any materials with the approval of the provider. St:tch approval ·will aot be UBFeasonably

withheld.

(e) Ia additioa to paying all fees owed plus iaterest; ifl the ~1eflt that the city

r~li~Ns the proYider's franchise fee paymeats, and finds that the provider has ooderpaid the

fee o\c~;ed for aay year ia aa amoUBt exceediag five pereeflt (5~~) of the franehise fees aetually

paid, the provider shall pay the reasoaable cost of the city's re:rt'iew aad HBderpaymeat

reco .. ;ery costs.

(7) The city will maintain coafideatiality of informatica proT1ided by providers

to the maximum eKteat permitted by lav'l vrhea pro·viders have notified the city of the

confideatial aature of specifically ideatified information reasoaably marked by the provider

as "Coafidential." The city v1ill maintain the coafidefltiality of this iaformation to the

maximum extent permitted b;y lw.v.]

A. Infrastructure Maintenance Franchise Fee.

(1) Pursuant to the authority granted by section § 3-42-1 NMSA 1978 and 4 7

U.S.C. 253(c), there is hereby imposed an infrastructure maintenance franchise fee upon

telecommunications retailers at the rate of two percent (2%) of all gross charges charged by

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telecommunications retailers to a service address in the city for telecommunications

originating or received in the city.

{2) The fee imposed by this chapter shall not be imposed in any circumstances in

4 which the imposition of the fee would violate the Constitution or statutes of the United States.

5 Section 4. A new Subsection 27-2.6 SFCC 1987 is ordained to read:

6 27-2.6 [NEW MATERIAL] Collection of Additional Charge by Retailers.

7 A. Any retailer making or effectuating a sale of telecommunications at retail shall pay

8 the infrastructure maintenance franchise fee to the department as provided by 27-2.5 of this chapter.

9 The fee shall constitute a debt owed by the retailer to the city.

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B. The retailer shall charge each customer an additional charge in an amount equal to

the infrastructure maintenance franchise fee attributed to the customer's service address in the city.

This additional charge to customers shall, when collected, be stated as a distance item on the bill to

each customer separate and apart from the retailer's gross charges to its customers for

telecommunications.

C. Each retailer may retain two percent (2%) of the additional charges it collects under

this chapter to reimburse itself for expenses incurred in connection with accounting for and remitting

the fee to the department.

*Editor's Note- Renumber the existing Subsection 27-2.6 as Subsection 27-2.7, renumber the

existing Subsection 27-2.7 as Subsection 27-2.8, renumber the existing Subsection 27-2.8 as

Subsection 27-2.9, and renumber the existing Subsection 27-2.9 as Subsection 27-2.10.

Section 5. A new Subsection 27-2.11 SFCC 1987 is ordained to read:

27-2.11 [NEW MATERIAL] Filing Returns and Payments by Retailers.

A. On or before the last day of each calendar month, every retailer required to pay the

infrastructure maintenance franchise fee imposed by this chapter shall file with the department a

remittance return and shall pay the fee attributable to gross charges for the preceding calendar month.

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1 The return shall be filed on a form prescribed by the director, and shall contain such information as

2 the director may reasonably require.

3 B. No later than February 28th of each year, every telecommunications retailer shall

4 provide to the department a report of an audit performed by an independent certified public

5 accountant attesting to the amount of the infrastructure maintenance franchise fees paid to the

6 department for the preceding calendar year, and that such amount complies with the requirements of

7 this chapter.

8 *Editor's Note- Renumber the existing Subsection 27-2.11 as Subsection 27-2.17.

9 Section 6. A new Subsection 27-2.12 SFCC 1987 is ordained to read:

10 27-2.12 [NEW MATERIAL] Registration of Providers and Resellers.

11 A. Every telecommunications provider within the meaning of this chapter shall register

12 with the department within 90days after the effective date of the ordinance authorizing a franchise

13 with that provider, on a form to be provided by the department, the name and address of every

14 telecommunications reseller or other telecommunications provider with whom the registering

15 telecommunications provider has a contractual relationship to provide telecommunications services or

16 to make available telecommunications facilities in the public way. The telecommunications provider

17 shall have a continuing duty to file with the department a revised registration forms within 45days

18 after the date of occurrence of any changes in the information provided on the form, including the

19 creation or termination of a contractual relationship described herein.

20 *Editor's Note- Renumber the existing Subsection 27-2.12 as Subsection 27-2.18.

21 Section 7. A new Subsection 27-2.13 SFCC 1987 is ordained to read:

22 27-2.13 [NEW MATERIAL] Resales.

23 Whenever amounts are claimed to be excluded from gross charges as sales for resale under

24 Section 27-2.3(H), the reseller shall furnish to the telecommunications provider the reseller's resale

25 information. The telecommunications provider shall retain the resale information with its books and

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records.

*Editor's Note- Renumber the existing Subsection 27·2.13 as Subsection 27-2.19.

Section 8. A new Subsection 27-2.14 SFCC 1987 is ordained to read:

27-2.14 [NEW MATERIAL] Maintaining Books and Records.

Every retailer required to pay the fee imposed by this chapter, and every other

telecommunications provider claiming an exclusion from gross charges as sales for resale under

Section 27-2.9, shall keep accurate books and records of its business or activity, including original

source documents and books of entry denoting the transactions that gave rise, or may have given rise,

to any liability or exemption. All such books and records shall, at all times during business hours of

the day, be subject to and available for inspection by the department.

* Editor's Note- Renumber the existing Subsection 27-2.14 as Subsection 27-2.20.

Section 9. Subsection 27-2.15 SFCC 1987 is hereby repealed, and a new Subsection

27-2.15 is ordained to read:

27-2.15 [NEW MATERIAL] Application of Other Revenue Provisions.

The infrastructure maintenance franchise fee imposed by this chapter is imposed in additional

to all taxes, fees and other revenue measures imposed by the city, the state of New Mexico or any

other political subdivision of the state; provided, however, that no fee or other compensation in

additional to the infrastructure maintenance franchise fee provided in this chapter shall be required for

the use of the public way by telecommunications carrier.

* Editor's Note- Renumber the existing Subsection 27-2.10 as Subsection 27-2.16.

Section 10. Subsection 27-2.11 SFCC 1987 (being Ord. #2010-14 §13, as amended) is

hereby amended to read:

[27 2.11] 27-2.17 [Vialatiaas aad] Penalties; Remedies.

24 [ AetioB ay the eity to impose fiaes ana other penalties Hftaer this section shall ae initiated

25 only after aispHte resolHtion provisioas of this seetion have eoaelHaea. All impositioas of fines shall

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1 be stayed for Hf' to oinety (90) days dmiog the period of good faith activity ooder the dispate

2 resollitioo pro'lisioos.

3 A 1 '·

Failure of a provider to abide by the requiremeots of Sectioo 27 2.7 SFCC 1987,

4 regardffig the pablie rights of ·way: five IN:mdred dollars ($500.) per day for eaeh day saeh Yiolatioo

5 oeaars on a f>er loeation basis, to a maJdml:lftl of five thousaod dollars ($5,00Q.) f>er day for all

6 violatioos withio a radius ofoae thousand feet (1,000').

7 B. Fa-ilme of a f>royider to abide~· the reqairemeots of SHbseetioa 27 2.5 8FCC 1987,

8 regardiBg eompensatioH for use of the f>Hblia rights of Vlay, aod the eity's riglit to perform audits: ooe

9 lmodred dollars ($100.) f>er day for eaea day saeh violatioa oeears.]

10 A. Any telecommunications retailer who fails to pay the infrastructure maintenance

11 franchise fee as provided by this chapter shall be subiect to a fine of not less than $100 for each day

12 that the failure to pay continues. Each day that the retailer's failure to pay continues shall constitute a

13 separate and distinct violation and offense under this chapter. Any retailer who becomes subject to

14 this fine may be enjoined from doing business in the city until the retailer has paid all sums due and

15 owing under this chapter.

16 B. Any telecommunications provider who otherwise violates this chapter shall be

17 subject to a fine of not less than $100 for each offense. Each day the violation continues shall

18 constitute a separate offense.

19 c. Default and Termination of Franchise:

20 (1) The provider agrees that an event of default shall include but shall not be

21 limited to any of the following acts or failure to act by the provider:

22 (a) Failure to obtain any applicable permits from the city pursuant to this

23 section or the franchise.

24 (b) Failure to comply with the assignment of or transfer of control

25 provisions of this section or the franchise.

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(c) Failure to supply any mutually agreed-upon non-monetary

consideration.

(d) Failure to supply or maintain bonds as may be required by the city to

assure the proper completion of any construction performed.

(e) Failure to make any of the payments set forth in this section or as

required in any franchise.

(f) Failure to pay any permit fees, or failure to comply with any rules,

regulations, orders, approvals or directives of the city as set forth in this section or

any franchise.

(g) Failure to comply with any federal, state or local laws upon

enforcement.

(h) Failure to submit maps, operational data, reports, insurance

certificates or other required documents.

(i) Failure to use any of the telecommunications facilities in the public

rights-of-way to transmit, receive, distribute, provide or offer telecommunications

services for a period of six ( 6) consecutive months, excepting facilities maintained

for spare capacity and/or future use.

(2) Upon the occurrence of an event of default, in accordance with the

procedures provided for in this section or any franchise, the city may take any of the

following actions so long as the city does not also take action to impose penalties for the

same conduct under another ordinance or regulation:

(a) Require the provider to take such actions as the city deems

appropriate that are consistent with provider's duties under its franchise; or

(b) Seek money damages from the provider as compensation for such

event of default; or

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(c) Accelerate the expiration of the term of any franchise by decreasing

the term of the franchise. The extent of such acceleration shall be determined by the

city and may include any period of time, but not less than six (6) months, provided

that at least six ( 6) months remain under the franchise; or

(d) As a last measure only, terminate the franchise and the city may

require the provider at its sole cost to remove all of its facilities and reasonably

restore all rights-of-way to their existing conditions within one hundred eighty (180)

days after termination or the city may assume ownership of the facilities consistent

with paragraph C( 4)(f) below.

(3) The city shall exercise the rights set forth in this subsection in accordance

with the following procedures:

(a) The director shall notify the provider, in writing, of an alleged event

of default. This written notice shall set forth with reasonable specificity the facts the

city believes are the basis for declaring that an event of default has occurred. The

provider shall within thirty (30) calendar days of the date the notice is postmarked, or

such additional time as the director may specify in the notice, cure the alleged event

of default, or in writing present for review by the director a reasonable time frame

and method to cure the event of default. The provider, in lieu of the cure of the event

of default as set forth herein, may in writing present facts and arguments as to why

the provider disagrees that an event of default has occurred.

(b) If the provider presents a written response that challenges whether an

event of default has occurred, the director shall within ten (10) days review the

submitted materials and determine again whether an event of default has occurred. If

the director reaffirms that an event of default has occurred, the provider shall be

notified in writing of this decision and shall, within thirty (30) calendar days, cure the

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alleged event of default. The period to cure is tolled in the event one (I) party

demands mediation until such time as mediation is completed.

(c) If the provider fails to cure the event of default so declared pursuant

to this section within the time permitted by the director, the director shall prepare a

written report to the governing body and recommend action to be taken. If the

governing body, after consideration of this report and hearing, agrees that an event of

default has occurred, it may order an appropriate remedy as set forth herein.

( 4) In addition to the rights under this section, the city, upon any termination,

may, at its sole discretion, direct the provider to remove, at the provider's sole cost and

expense, any or all of its facilities from all public rights-of-way within the city, subject to the

following:

(a)

(b)

The city may determine that removal of facilities is not necessary;

In removing any part of the facilities, the provider shall refill and

compact, at its own expense, any excavation that shall be made by it and shall leave

all public rights-of-way in as good a condition as that prevailing prior to the

provider's removal of the facilities;

(c) The city shall have the right to inspect and approve the conditions of

public rights-of-way after removal has occurred;

(d) The removal shall commence within thirty (30) days of an order to

remove being issued by the director at the discretion of the governing body and shall

be completed within one hundred eighty (180) days of the termination;

(e) The provider shall be responsible for all necessary removals of the

facilities and maintenance of the street area in the same manner and degree as if the

facilities were in active use, and the provider shall retain all liability associated with

such removals.

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D.

(f) As an alternative to removal, the provider may, subject to the city's

approval, abandon its facilities in place and transfer ownership of the installed

facilities to the city. Nothing herein shall cause the city to incur any costs related to

the removal of the provider's facilities or the transfer of ownership of said facilities to

the city.

Dispute Resolution Provision.

(1) Following the notice set out in subsection 27-2.11C(3) SFCC 1987, above or

in the event of any other dispute arising from or relating to the franchise or breach thereof,

and if the dispute cannot be settled through negotiations, the following process will be

followed during which any of the above remedies and penalties may be imposed.

(2) All disputes will be mediated [before resorting to arbitration] prior to

litigation. The costs of such mediation will be equally split. The place of the mediation

session shall be in Santa Fe, New Mexico. The city and the provider will select a mediator or

mediators by mutual agreement and, in cooperation with the mediator(s), shall determine all

necessary rules and procedures for the mediation. The city and the provider will fully

cooperate in the mediation activities. All mediation communications shall be confidential, not

subject to disclosure and shall not be used as evidence in any arbitration, judicial, or

administrative proceeding, as set forth in the Mediation Procedures Act, Chapter 11 NMSA

(2007 Supp.) or as subsequently amended.

[(3) Following the mediation session aay Wl:fesohzed claims shall be sabmittea to

arbitration pttrsHaat to the New Mexico Uniform I\rbitration Act, Section 4 4 7A 1, et seq.,

}~48A 1978 or as subseqaently ameaded.

(a) The city and provider shall first attempt to select an arbitrator

aeceptable to both parties. If they are unable to mutaally agree upon an acceptahle

arhitrator within thirty (30) days from the date of the origiBal 'tvritten claim in

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20 E.

areitmtion, thea the Chief J1:1dge of the First J1:1dieial Distriet Court shall appoint an

arbitrator.

(a) The eity and the pro'lider shall retaia the right to obj est to the

arbitrator seleeted by said Chief J1:1dge. If a party objeets to the arbitrator, it shall

req1:1est that the eol:lft appoiB-t another arbitrator.

(e) The arbitmtor shall hear the arbitration as soon as is praetieable.

(d) The arbitrator's ~eases shall be paid eq1:1ally by eaeh side. Bash

party shall bear his or her O\¥B attorneys' fees, eosts and e:xpenses Hnless otherwise

determ.iaed hy the arbitrator.

(e) The plaee of the arbitratioa shall be Saata Fe, 'Nevl ~4e:xieo.

(f) After a f)arty reeei:;es aotiee of the arbitration a·ward, and l:lf'OD

motioa to the eourt, the eourt shall issue a eonflflHing order 1:1nless the av~&Fd is

modified, eorreeted, or vaeated.

(g) Ia the e-vent a f)arty fails to proeeed "tVith arbitration of arbitrable

elaims, tlllSl:leeessfull;· ehallenges the arbitrator's avlard, or fails to eomply v,rith the

arbitrator's avlard, the other party is efttitled to eosts of suit inell:lding reasonable

attorney's fee for having to eompel arbitration or defend or enforee the avlard.

(h) 'Nothing in this subseetion shall prohibit a party from ehallenging the

legality of a raling or deeision of an arbitrator in any eourt of eomJletent jarisdietion.]

Remedies and Penalties Not Exclusive. Subject to the provisions of subsection 27-

21 2.11, all remedies and penalties granted pursuant to this section and franchise are cumulative and not

22 exclusive, and the recovery or enforcement by one (1) available remedy or imposition of any penalty

23 is not a bar to recovery or enforcement by any other such remedy or imposition of any other penalty.

24 The city shall not, however, pursue duplicative remedies or penalties against provider for violations

25 of other city ordinances or regulations arising from the same conduct. The city reserves the right to

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enforce the penal provisions of any ordinance or resolution and to avail itself of any and all remedies

available at law or in equity. Failure to enforce shall not be construed as a waiver of a breach of any

term, condition, or obligation imposed upon the provider by or pursuant to this section or any

franchise. A specific waiver of a particular breach of any term, condition, or obligation imposed upon

the provider by or pursuant to this section or franchise shall not be a waiver of any other or

subsequent or future breach of the same or of any other term, condition, or obligation, or a waiver of

the term, condition, or obligation itself.

* Editor's Note- Renumber the existing Subsection 27-2.17 as Subsection 27-2.22.

Section 11. Subsection 27-2.16 SFCC 1987 (being Ord. #2010-14, §18 as amended) is

amended to read:

[17 1.1&]27-2.21 Appointment of Telecommunications Advisory Committee.

The mayor [ sftaH] may solicit and appoint, with the advice and consent of the city council, a

committee of [ao less thaa fi"te (5) aad ao more than aiDe (9)] individuals who shall advise, consult

and work with city staff, including without limitation, the economic development division, the Santa

Fe Complex, a local nonprofit; and the public [in order to de:velof' a teleeommHBieatioas master f'laB

aad f)reseat saek master f'lan to the governing body for its reYie=w aad ilf'f'roval aad to make

reeommeadatioas to the govemiag body regarding ameadmeats to Seetioa 27 2 SFCC 1987 ia order

to fooilitate imf)lemeatatioa of the ilf'f'ro:yed master f'lan].

APPROVED AS TO FORM:

. BRENNAN, CITY ATTORNEY

M!Legislation/Bills 20 15/Telecornmunications

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City of Santa Fe Fiscal Impact Report (FIR)

This Fiscal Impact Report (FIR) shall be completed for each proposed bill or resolution as to its direct impact upon the City's operating budget and is intended for use by any of the standing committees of and the Governing Body of the City of Santa Fe. Bills or resolutions with no fiscal impact still require a completed FIR. Bills or resolutions with a fiscal impact must be reviewed by the Finance Committee. Bills or resolutions without a fiscal impact generally do not require review by the Finance Committee unless the subject of the bill or resolution is financial in nature.

Section A. General Information

(Check) Bill: X Resolution: ----(A single FIR may be used for related bills and/or resolutions) Short Title(s): AN ORDINANCE RELATING TO THE CITY OF SANTA FE TELECOMMUNICATIONS FACILITIES IN THE PUBLIC RIGHTS-OF-WAY ORDINANCE; AMENDING SUBSECTION 27-2.1 SFCC 1987 TO ESTABLISH LEGISLATIVE FINDINGS; AMENDING SUBSECTION 27-2.3 SFCC 1987 TO REPEAL THE DEFINITION OF "GROSS REVENUE" AND ESTABLISH A NEW DEFINITION FOR "GROSS CHARGE"; AMENDING SUBSECTION 27-2.5 TO REPEAL THE FEE STRUCTURE AND ESTABLISH AN INFRASTRUCTURE MAINTENANCE FRANCHISE FEE; AND MAKING SUCH OTHER CHANGES AS ARE NECESSARY TO CARRY OUT THE INTENT OF THIS ORDINANCE.

Reviewing Department(s ): =C=ity+--"'-A=tt=o=rn=e::.,iy,_':::..s ..::::O~ffi=tc=e=-------------------------

Persons Completing FIR:

Reviewed by City Attorney:

(Signatur~) o -2.,5 ~ 2 ol-6

Reviewed by Finance Director: -----1'----------------·Date: __ D ________ _ (Signature)

Section B. Summary Briefly explain the purpose and major provisions of the bill/resolution: This bill allows the City to impose a franchise fee and to receive revenue for the Telecom provider's use and occupancy of the PROW.

Section C. Fiscal Impact Note: Financial information on this FIR does not directly translate into a City of Santa Fe budget increase. For a budget increase, the following are required: a. The item must be on the agenda at the Finance Committee and City Council as a "Request for Approval of a City

of Santa Fe Budget Increase" with a defmitive funding source (could be same item and same time as billlreso lotion)

b. Detailed budget information must be attached as to fund, business units, and line item, amounts, and explanations (similar to annual requests for budget)

c. Detailed personnel forms must be attached as to range, salary, and benefit allocation and signed by Human Resource Department for each new position(s) requested (prorated for period to be employed by fiscal year)*

1. Projected Expenditures: a. Indicate Fiscal Year(s) affected- usually current fiscal year and following fiscal year (i.e., FY 03/04 and FY 04/05) b. Indicate:

c. Indicate:

"A" if current budget and level of staffmg will absorb the costs "N" if new, additional, or increased budget or staffmg will be required "R" if recurring annual costs "NR" if one-time, non-recurring costs, such as start-up, contract or equipment costs

d. Attach additional projection schedules if two years does not adequately project revenue and cost patterns e. Costs may be netted or shown as an offset if some cost savings are projected (explain in Section 3 Narrative)

Finance Director: ___ _

Page 29: Item 11a.pdf

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Column#:

Column#:

_____ Check here if no fiscal impact

Expenditure Classification

Personnel*

Fringe**

Capital Outlay

Land/ Building

Professional Services

All Other Operating Costs

Total:

2 3 FY "A" Costs

Absorbed or "N" New Budget Required

$

$

$

$

$

$

$ 0

4 5 6 7 8 "R" Costs FY "A" Costs "R" Costs- Fund Recurring Absorbed Recurring Affected or"NR" or"N"New or "NR" Non- Budget Non-recurring Required recurring

$

$

$

$

$

$

$ 0

* Any indication that additional staffmg would be required must be reviewed and approved in advance by the City Manager by attached memo before release of FIR to committees. **For fringe benefits contact the Finance Dept.

2. Revenue Sources: a. To indicate new revenues and/or b. Required for costs for which new expenditure budget is proposed above in item 1.

2 3 4 5 6 Type of FY --- "R" Costs FY "R" Costs- Fund ---Revenue Recurring Recurring or Affected

or "NR" "NR" Non-Non- recurring recurring

$ $

$ $

$ $

Total: $ $

2

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3. Expenditure/Revenue Narrative:

Explain revenue source(s). Include revenue calculations, grant(s) available, anticipated date of receipt of revenues/grants, etc. Explain expenditures, grant match(s), justify personnel increase(s), detail capital and operating uses, etc. (Attach supplemental page, if necessary.)

An amendment to the telecommunications Ordinance (Chapter 27) will allow the City to collect franchise fees on telecommunications service providers. Without the amendment, the City has no ability to collect franchise fees, which are permissible under state and federal law.

Section D. General Narrative

1. Conflicts: Does this proposed bill/resolution duplicate/conflict with/companion to/relate to any City code, approved ordinance or resolution, other adopted policies or proposed legislation? Include details of city adopted laws/ordinance/resolutions and dates. Summarize the relationships, conflicts or overlaps.

None identified.

2. Consequences of Not Enacting This Bill/Resolution:

Are there consequences of not enacting this bill/resolution? If so, describe.

Yes. Under 47 U.S.C § 253(a), the City cannot impose barriers to entry for telecommunication service providers. This means that the City may have to allow telecom providers into the PROW, but without the Ordinance Amendment, the City would not receive compensation for the use and occupancy of the PROW. 47 U.S.C § 253(c), and NMSA 1978, § 3-42-1 allow the City to impose a franchise fee on a competitively neutral and nondiscriminatory basis. This bill allows the City to impose a franchise fee and to receive revenue for the Telecom provider's use and occupancy of the PROW.

3. Technical Issues:

Are there incorrect citations of law, drafting errors or other problems? Are there any amendments that should be considered? Are there any other alternatives which should be considered? If so, describe.

None identified.

4. Community Impact:

Briefly describe the major positive or negative effects the Bill/Resolution might have on the community including, but not limited to, businesses, neighborhoods, families, children and youth, social service providers and other institutions such as schools, churches, etc.

By adopting this bill, the City would be permitted to collected franchise fees from telecommunication service providers that are legally allowed to access the PROW. If not adopted, these service providers would still be able to access the PROW, but the City would not receive any franchise fees for this right.

Form adopted: 01112/05; revised 8/24/05; revised 4117/08

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