HomeMy WebLinkAboutResolution - 2015-R0363 - Analyze Appropriateness Of Franchise Fees And PILOT - 10/22/2015No. 2015-RO363
No. 7.9
22, 2015
RESOLUTION
WHEREAS, many municipalities in Texas impose a "franchise fee" on
telecommunication and utility providers operating within the city limits of those
municipalities to compensate the municipality for lost use of its rights-of-way, the cost of
upkeep and maintenance for the rights-of-way, as well as a form of "rent" for the use of
city property that otherwise would have been unavailable to the provider; and
WHEREAS, the City of Lubbock, through its constitutional home -rule authority,
has likewise historically imposed a franchise fee on providers in connection with their use
of the City's rights-of-way, and collected from certain City of Lubbock utilities a payment
in lieu of taxes ("PILOT"); and
WHEREAS, franchise fees and the PILOT have become a revenue source for the
City of Lubbock, and prudence, transparency, and good governance require that an in-
depth needs analysis be undertaken to ensure that the franchise fee, the PILOT, their
amounts, their scope, and their methods of imposition are reasonable, responsible, and
appropriate for the City and those providers operating in the City of Lubbock, and
ultimately the consumer of those services; and
WHEREAS, the City Council of the City of Lubbock desires that the City
Manager develop and undertake such an analysis, and report his findings back to the City
Council so that the City Council may have meaningful oversight, and make informed
decisions, as necessary, regarding the City's collection of and use of franchise fees and
the PILOT; NOW, THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Council of the City of Lubbock shall and does, by and upon
passage hereof, formally direct the City Manager to develop and undertake an in-depth
needs analysis of the City of Lubbock's imposition and use of a franchise fee upon
providers of telecommunication and utility services in the City of Lubbock rights-of-way,
and the PILOT upon certain City of Lubbock utilities, and report back to the City Council
any findings and recommendations stemming from that study.
CONSIDERED AND APPROVED this22ndday of October , 2015.
,4 / -
C.16ffERTSON, MAYOR
ATTEST:
keb cca Garza, City Secr tart' .
APPROVED AS TO
Mayor
Reso.Needs Analysis of Franchise Fees
10.23.15