Article II. SALE


ORDINANCE 18-2005

ORDINANCE CONFIRMING THE SALE AND AWARDING A NON-EXCLUSIVE FRANCHISE TO KENTUCKY DATA LINK, INC. FOR THE CONSTRUCTION, OPERATION AND MAINTENANCE OF TELECOMMUNICATIONS FACILITIES, EQUIPMENT AND SERVICES ON, ABOVE, ALONG AND BELOW PUBLIC RIGHT-OF-WAY WITHIN THE CITY OF OWNENSBORO, KENTUCKY, FOR A TERM OF TEN (10) YEARS, IN CONSIDERATION FOR WHICH FRANCHISEE SHALL PAY TO THE CITY OF OWNENSBORO THE ANNUAL SUM OF TEN THOUSAND DOLLARS ($10,000.00), ADJUSTED ANNUALLY FOR INFLATION AFTER THREE (3) YEARS. THIS FRANCHISE FURTHER ESTABLISHES A REGULATORY PROCESS UNDER THE TERMS OF WHICH KENTUCKY DATA LINK, INC. SHALL BE PERMITTED TO ENCROACH UPON AND REQUIRED TO EXCAVATE AND RESTORE PUBLIC RIGHT-OF-WAY WITHIN THE CITY IN ORDER TO OPERATE AND MAINTAIN ITS FACILITIES.

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 statute; and

WHEREAS, on February 15, 2005, the Owensboro Board of Commissioners adopted Ordinance 8-2005 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 successful telecommunications providers shall pay to the City an annual sum and/or provide equipment, facilities or services equal to fifty cents per linear foot for facilities installed in public right-of-way; and

WHEREAS, Ordinance 8-2005 further established 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

WHEREAS, Ordinance 8-2005 authorized and directed the City Manager to advertise the sale of said franchise and to award same to successful bidders on terms and conditions set forth in the ordinance and subsequent franchise agreement; and

WHEREAS, after publication of said advertisement on April 30, 2005, the only bid received by the City Manager was from Kentucky Data Link, Inc., as indicated in a letter and recommendation from the City Manager to the Owensboro Board of Commissioners.

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

Section 1. That the telecommunications franchise created and authorized by the adoption of Ordinance 8-2005, be, and it is hereby awarded to the highest and best bidder, Kentucky Data Link, Inc., for the cost of advertising and sale of said telecommunications franchise, payment of an annual sum in the amount of Ten Thousand Dollars ($10,000.00), adjusted annually for inflation after three (3) years.

Section 2. That the Mayor shall be, and hereby is, authorized and directed to execute the Telecommunications Franchise Agreement with Kentucky Data Link, Inc. on terms and conditions established in Ordinance 8-2005, a copy of which Franchise Agreement is attached hereto and incorporated herein by reference. The effective date of this Telecommunications Franchise Agreement is June 10, 2005.

INTRODUCED AND PUBLICLY READ ON FIRST READING, this the 17th day of May, 2005.

PUBLICLY READ AND FINALLY APPROVED ON SECOND READING, this the 7th day of June, 2005.

/s/
      Tom Watson
      Mayor

   

ATTEST:

/s/
      Carol Blake, City Clerk