Article I. CREATION  


§ 1. SHORT TITLE.
§ 2. LEGISLATIVE INTENT AND APPLICABILITY.
§ 3. DEFINITIONS.
§ 4. GRANT OF FRANCHISE.
§ 5. REGULATION OF FRANCHISE.
§ 6. PERFORMANCE BOND AND CONSTRUCTION BOND.
§ 7. LIABILITY, INSURANCE AND INDEMNIFICATION.
§ 8. CONSTRUCTION PROVISIONS.
§ 9. SERVICE PROVISIONS.
§ 10. REPORTS AND MISCELLANEOUS.
§ 11. SEVERABILITY.
§ 12. EFFECTIVE DATE.

ORDINANCE 8-2005

AN ORDINANCE OF THE CITY OF OWENSBORO, KENTUCKY, AUTHORIZING, REGULATING AND PROVIDING FOR THE CREATION AND SALE OF A FRANCHISE OR FRANCHISES, FOR THE PRIVILEGE OF INSTALLING, OPERATING, MAINTAINING AND SELLING TELECOMMUNICATIONS SERVICES THROUGH FACILITIES INSTALLED ON, ABOVE, ALONG AND BELOW PUBLIC RIGHT OF WAY WITHIN THE CITY OF OWENSBORO, KENTUCKY, FOR A TERM NOT TO EXCEED TEN (10) YEARS, IN CONSIDERATION FOR WHICH THE SUCCESSFUL TELECOMMUNICATIONS PROVIDER(S) (FRANCHISEE) SHALL PAY TO THE CITY AN ANNUAL SUM AND/OR PROVIDE EQUIPMENT, FACILITIES OR SERVICES EQUAL TO FIFTY CENTS ($.50) PER LINEAR FOOT FOR FACILITIES INSTALLED IN PUBLIC RIGHT OF WAY; AND FURTHER ESTABLISHING A REGULATORY PROCESS UNDER THE TERMS OF WHICH TELECOMMUNICATIONS PROVIDERS SHALL BE PERMITTED TO ENCROACH UPON AND REQUIRED TO EXCAVATE, AND RESTORE PUBLIC RIGHT OF WAY WITHIN THE CITY IN ORDER TO CONSTRUCT, MAINTAIN AND REPAIR ITS FACILITIES; AND FURTHER ESTABLISHING A BID PROCEDURE FOR THE SALE OF SAID FRANCHISE(S) AWARDED TO SUCCESSFUL BIDDERS ON TERMS AND CONDITIONS SET FORTH HEREIN.

WHEREAS, the Constitution of the Commonwealth of Kentucky and KRS 82.082 authorize municipal corporations to require public utilities and private entities, including providers of telecommunications services to individuals and businesses within the corporate boundaries of the City of Owensboro, Kentucky, to operate under franchise agreements and to grant utilities and telecommunications providers the right to use public right of way on such terms and conditions as are deemed reasonable and necessary, provided they are not in conflict with the Kentucky Constitution or state statutes; and

WHEREAS, the City of Owensboro, Kentucky, finds that as the telecommunications industry develops, competition in the marketplace has the potential of creating service to the community, generating a revenue stream and enhancing economic development in the community; and

WHEREAS, the City of Owensboro, Kentucky, needs to establish regulations, standards and time frames for telecommunications providers and systems that desire to utilize public right of way in an effort to promote competition, insure reasonable and nondiscriminatory use of the City's public right of way, minimize disruption of and damage to public right of way, minimize the risk of personal injury and/or property damage to third parties and protect the limited physical capacity of the public right of way; and

WHEREAS, telecommunications providers and systems should compensate the City of Owensboro for the value of and use of its public right of way, for the cost of maintenance of the public right of way, for the cost of regulating the use of the public right of way, for depreciation of pavement within the right of way, additional cost of police services to deal with traffic disruptions, and interference with the City's other utility systems; and

WHEREAS, the City of Owensboro, Kentucky, further finds that the public right of way to be used by Franchisees in providing telecommunications services is valuable public property acquired and maintained by the City and State at great expense to taxpayers, and allowing Franchisee to utilize said public right of way is a valuable property right, thereby relieving Franchisees from investing substantial capital in right of way costs and acquisitions. In addition, the administration of this ordinance imposes additional regulatory responsibility and expense upon the City of Owensboro; and

WHEREAS, in order to protect the health, safety and welfare of the citizens of Owensboro, Kentucky, to protect and preserve the City's public right of way and infrastructure and to provide for the orderly administration of the franchise contemplated herein, it is necessary and appropriate to require the successful franchisee to conduct its business and operations in a lawful manner in compliance with the terms and conditions set forth hereinbelow; and

NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF OWENSBORO, KENTUCKY, AS FOLLOWS: