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ORD 1988-18TOWN OF TROPHY CLUB, TEXAS ORDINANCE NO. 0 88-18 AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS AMENDING ORDINANCE NO. 85-11 GRANTING A TELEPHONE FRANCHISE TO SOUTHWESTERN BELL TELEPHONE COMPANY BY AMENDING SECTION 7 THEREOF TO PROVIDE THAT THE TELEPHONE COMPANY PAY THE TOWN THREE PERCENT (3%) OF THE ANNUAL GROSS RECEIPTS RECEIVED FROM BASIC LOCAL AND PREMIUM LOCAL EXCHANGE TELEPHONE SERVICE; AMENDING SECTION 8 TO PROVIDE THAT THE PAYMENT OF THE THREE PERCENT (30) FEE SHALL BE IN LIEU OF CERTAIN TAXES AND CHARGES EXCEPT AD VALOREM TAXES AND SALES AND USE TAXES; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; DELCARING AN EFFECTIVE DATE. BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: Section 1. That Ordinance No. 85-11 of the Town: of Trophy Club, Texas (the "Town") granting a telephone franchise to Southwestern Bell Telephone Company is hereby amended in the following particulars, and that all other sections, subsections, paragraphs, sentences, phrases and words of said ordinance are not amended but are hereby ratified, verified, approved and affirmed: A. That Section 7 of Ordinance No. 85-11 is hereby amended so that it shall hereafter read as follows: Section 7. Annual Cash Consideration to be Paid by the Telephone Company. To indemnify the Town for any and all possible damages to its street, alleys and public grounds which may result from the placing and maintenance therein or thereon of the Telephone Company's poles, conduits, or other telephone equipment or apparatus, and to compensate the Town for its superintendence of this agreement, and as the cash consideration for the same, the Telephone Company agrees to pay to the Town annually during the continuance of the agreement a sum of money equal to three percent (30) of the annual gross receipts from basic local and premium local exchange telephone service for the preceding year 0165] received by the Company from the rendition of telephone service within the corporate limits of the Town. The total sum of money paid hereunder shall not in any event exceed the amount allowed by the Public Utility Commission of Texas as a reasonable and necessary expense of operation for rate making purposes. The term "basic local exchange telephone service" shall mean the provision by the Telephone Company of an access lane and dial tone to a fixed location for sending and receiving telecommunications in the Telephone Company's local exchange network. The term "premium local exchange telephone service" shall mean an access line and dial tone for enhanced telephone service, including multi -line rotary, trunks, customer owned paid telephones, public announcement service and 976 service. Payment shall be made annually on April 15 of each year as herein provided. B. That Section 8 of Ordinance No. 85-11 is hereby amended so that it shall hereafter read as follows: The Town agrees that the consideration set forth in the preceding section hereof shall be paid and received in lieu of any tax, license, charge, fee, street or alley rental or other character of charge for use and occupancy of the streets, alleys, and public places of the Town; in lieu of any pole tax or inspection fee tax; in lieu of any easement or franchise tax, whether levied as an ad valorem, special, or other character of tax; and in lieu of any imposition other than the usual general or special ad valorem taxes or sales and use taxes now or hereafter levied. Should the Town not have the legal power to agree that the payment of the foregoing cash consideration shall be in lieu of the taxes, licenses, charges, fees, rentals, and easement or franchise taxes aforesaid, then the Town agrees that it will apply so much, of said payment as may -be necessary to the satisfaction of the Telephone Company's obligations, if any, to pay any such taxes, licenses, charges, fees, rentals, and easement or franchise taxes. Section 2. if any section, article, paragraph, sentence, clause, phrase or word in this ordinance, or application thereto any person or circumstances is held invalid -2- Q165j or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it would have passed such remaining portions of the ordinance despite such invalidity, which remaining portions shall remain in full force and effect. Section 3. This Ordinance shall be cumulative of all other ordinances of the Town of Trophy Club, Texas, affecting the Telephone Company franchise and shall not repeal any of the provisions of said ordinances except in those instances where provisions of those ordinances are in direct conflict with the provisions of this Ordinance. Section 4. That this ordinance shall take effect from and after its date of passage as provided by law. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas this the 11 day of July , 1988. May r, Town of �T ophy Club, Texas rf ATT 7 .!lf Tcfw-h--tecretary Town of Trophy Club [SEAL] APPROVED AS TO FORM: Town Atorney Town o Trophy Club, Texas -3- 0165]