AN ORDINANCE TO SOUTH CENTRAL TELEPHONE ASSOCIATION, INC., ITS SUCCESSORS AND ASSIGNS, A FRANCHISE AND THE RIGHT TO CONSTRUCT, OPERATE, MAINTAIN AND EXTEND A TELECOMMUNICATIONS SYSTEM IN THE CITY OF ANTHONY, KANSAS, PRESCRIBING THE TERMS OF SAID GRANT AND RELATING THERETO.

BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF ANTHONY, KANSAS:

SECTION 1. DEFINITIONS

For purposes of this ordinance, the following words and phrases shall have the meanings given herein:

a. “Access Lines” shall mean the following billed main lines and trunks, whether provided on a retail or wholesale basis: residential lines; business lines, ISDN lines (channels); PBX trunks, Centrex or Centrex-like stations; unbundled loop facilities special access services, simulated exchange access provided by central office switching arrangement where all stations are served by such simulated exchange access lines are used by a single customer of the provider of such arrangement; where stations are served by simulated exchange access lines provided by central office bases switching arrangement and the stations served are not used by a single arrangement, each station shall constitute and access line, and pay phone lines.

a. “Access Line” shall include wireless telecommunication services subject to 47 C.F.R. Part 24.

b. “City” shall mean the City of Anthony, Kansas

c. “Cable Service” means the one way transmission to subscribers of video progranm1ing service, and subsc1iber interaction, if any, which is required for selection and use of such video programming or other programming service. Cable Service does not include point to point, point to multi-point, and switched video services that Telephone Company has historically offered or other similar services that Telephone Company may in the future offer.

cl. “Facilities” shall mean telephone and telecommunication lines, conduits, fiber optic cables, wires, cables, pipes, poles, towers, vaults, and appliances, either under or above ground.

e. “Gross receipts” shall mean the total income clue Telephone Company for the providing of telecommunications services to customers within the city limits of the City of Anthony, less all federal, state and local taxes and fees.

f. “Public improvement” shall mean any existing or contemplated public facility building, or capital improvement project, including without limitation streets, alleys, sidewalks, sewer, water, drainage, rights-of-way improvement, and public projects.

g. “Public project” shall mean any project planned or undertaken by the City or any governmental entity for construction, reconstruction, maintenance or repair of public facilities or improvements or any other purpose of a public nature.

h. “Rights-of-way” shall mean present and future streets, alleys, rights-of-way, and public easements dedicated in plats of the City of Anthony, Kansas.

i. “Street rights-of-way” shall mean the entire width between property lines of land, property or an interest therein of every way publicly maintained where any part thereof is open to the use of the public for purposes of vehicular traffic, including street, avenue, boulevard, highway, expressway, alley or any other public way for vehicular travel by whatever name.

j. “Telecommunications” -The transmission, between or among points specified by the user, of information of the user’s choosing, without change in the fo1m or content of the information as sent and received.

k. “Telecommunications Service” -The offering of telecommunications for a fee directly to the public, or to such classes or users as to be effectively available directly to the public, regardless of the facilities used.

l. “Telephone Company” shall mean South Central Telephone Association, Inc., its successors and assigns.

SECTION 2. GRANT

a. There is hereby granted to Telephone Company the right, privilege and franchise to construct, maintain, extend and operate its facilities, in, through and along the rights-of-way for the purpose of supplying Telecommunications Services to the City and the inhabitants thereof for the full term of this franchise; subject, however, to the terms and conditions herein set forth.

b. This franchise does not provide the Telephone Company the right to provide “Cable Service” to City and inhabitants thereof. For purposes of this ordinance, “Cable Service” is defined as the one-way transmission to subscribers of video programming or other programming services, and subscriber interaction, if any, which is required for the selection of such video programming or other programming service; but “Cable Service” does not include point to point to multi-point, and switched video services that Telephone Company has historically offered or other similar services that Telephone Company may in the future offer. Nothing in this franchise is intended to preclude the City from seeking or authorize the City to seek a franchise from any subsidiary, affiliate, or third party providing “Cable Services”. Telephone Company and City agree that nothing in this franchise is intended to authorize the City to seek from Telephone Company nor to require Telephone Company to obtain a franchise to offer “Open Video Systems” as that term is used in Section 653 of the Telecommunications Act of 1996 codified at 47 U.S.C. 573). Telephone Company and City further agree, however, that this ordinance does not authorize Telephone Company to offer “Open Video Systems” without paying the fee on the gross revenues of the system operator for the provision of cable service in lieu of a franchise fee, pursuant to and in the manner described in 4 7 U.S.C. 573 (2) (b) and without complying with FCC regulations promulgated pursuant to 47 U.S.C. 573.

c. Upon written request from Telephone Company, the City agrees to begin negotiations in good faith with Telephone Company within thi1iy (30) days to provide Telephone Company a franchise to provide “Cable Service” to the City and inhabitants thereof on te1ms no more burdensome than the franchises granted to other providers of “Cable Service” with the City.

SECTION 3. USE OF RIGHTS-OF-WAY

In the use of rights-of-way under this franchise, the Telephone Company shall be subject to all rules, regulations, policies, resolutions and ordinances now or hereafter adopted or promulgated by the City in the reasonable exercise of its police power. In addition, the Telephone Company shall be subject to all rules, regulations, policies, resolutions, and ordinances now or hereafter adopted or promulgated by the City relating to permits and fees, sidewalk and pavement cuts, utility locations, construction coordination, beautification, and other requirements on the use of rights of- way and shall comply with the following:

a. The Telephone Company’s use of rights -of-way shall in all matters be subordinate to the City’s use of rights-of-way for any public purpose. The Telephone Company shall coordinate placement of its facilities in a manner, which minimizes adverse impact on public improvements, as reasonably determined by the City. Where placement is not otherwise regulated, facilities shall be placed with adequate clearance from such public improvements so as not to impact or be impacted by such public improvement.

b. All earth materials, sidewalks, paving, crossings utilities, public improvements or improvements of any kind, injured or removed by the Telephone Company in its activities under this franchise, shall be fully repaired or restored promptly by the Telephone Company at its sole expense and to the reasonable satisfaction of the City or owner thereof.

c. All facilities constructed, replaced, or relocated in the right-of-way after the date hereof shall be placed underground unless otherwise agreed to by the City. Where there are obstructions in the right-of-way such as trees, shrubs, other utilities, conm1ercial signs, man-made structures, or other like obstructions which may make the cost of such underground burial unreasonable, the Telephone Company may request waiver of this requirement, in which event the City will not unreasonably withhold consent. Any vaults, boxes, pedestals, and similar facilities placed above ground in street right-of-way shall be located behind the sidewalk where feasible.

The Telephone Company shall keep and maintain accurate records and as-built drawings depicting accurate horizontal and ve1iical location of all facilities constructed, reconstructed, or relocated in the street right-of-way after the’ date hereof and provide location information regarding specific future project locations to the City upon request. Such facilities shall be horizontally and ve1iically located at least eve1y 100 feet and at any other alignment change. All points of facilities shall be horizontally located from street centerline, or section or quarter section lines or comers. Ve1iical locations or all points of facilities shall consist of elevations in either City datum or United States Geological Survey datum. Where such information is available electronically, upon request from the City, Telephone Company agrees to provide such information in an electronic format. (City agrees to use information only to locate utility facilities in co1mection with municipal projects and further agrees not to disclose such information to anyone other than City employees requiring such information to locate utility facilities in connection with municipal projects, except as required by law. Telephone Company and City agree that such information is confidential and proprietary and agree that such information shall remain the sole property of the Telephone Company and agree that pursuant to K.S.A. 45-221 (12), (18), as amended, such information does not constitute public records subject to K.S.A. 45-218, as amended. In the event that City is required by law to disclose such information, City shall provide the Telephone Company seven (7) days advance notice of its intended disclosure of such information and shall take such action as may be reasonably required to cooperate with the Telephone Company to safeguard such information. The Telephone Company agrees to indemnify and hold the City harmless from any and all penalties or costs, including attorney’s fees, arising from the actions of the Telephone Company, of the City at the written request of the Telephone Company, in seeking to safeguard the confidentiality of information provided by Telephone Company to City under this section. In the event such information is required by force of law to be publicly disclosed, the Telephone Company shall have no further obligation under this section to provide the City with such information).

d. All work performed in the traveled way or which in any way impacts vehicular or pedestrian traffic shall be properly signed, barricaded, and otherwise protected. Such signing shall be in conformance with the latest edition of the Federal Highway Administration’s Standards and Guideline for Work Zone Traffic Control, unless otherwise agreed to by the City.

e. The Telephone Company shall notify the City not less than three (3) working days in advance of a regular meeting of the governing body (such notice to be adequate for timely notice on the governing body agenda under City procedures) of any construction, reconstruction, repair, or relocation of facilities which would require any street closure which reduces traffic to less than two lanes of moving traffic. Except in the event of an Emergency, as reasonably determined by the Telephone Company, no such closure shall take place without prior authorization from the City.

f. The Telephone Company shall cooperate promptly and fully with the City and take all reasonable measures necessary to provide accurate and complete information regarding the nature and horizontal and vertical location of its facilities located within rights-of-way when requested by the City or its authorized agents for a public project. Such location and identification shall be at the sole expense of the Telephone Company without expense to the City, its employees, agents, or authorized contractors. The Telephone Company shall designate and maintain a local agent, familiar with the facilities, who is responsible for satisfying info1mation needs of the City and other users of the rights-of-way.

g. The Telephone Company shall promptly remove, relocate, or adjust any facilities located in rights-of-way if reasonably necessary and directed by the City for any publicly fund ed improvement or project. Such removal, relocation, or adjustment for a pai1icular public project shall be perfo1med by the Telephone Company at its sole expense without expense to the City, its employees, agents, or authorized contractors and shall be specifically subject to rules and regulations of the City pertaining to such. If additional removal, relocation, or adjustment is the result of the inaccurate or mistaken information of the Telephone Company, the Telephone Company shall be responsible for such at its sole expense.

h. It shall be the responsibility of the Telephone Company to take adequate measures to protect and defend its facilities in the rights-of-way from harm or damage. If the Telephone Company fails to accurately or timely locate facilities when requested, it has no claim for costs or damages against the City and its authorized contractors unless such party is solely responsible for the harm or damage by its negligence or intentional conduct. Telephone Company shall be responsible to the City and its agents, representatives, and authorized contractors for all damages including, but not limited to, delay damages, repair costs, down time, construction delays, penalties or other expenses of any kind arising out of the failure of the Telephone Company to perform any of its obligations under this agreement unless the damaged party is solely responsible for the harm or damage by its negligence or intentionally caused harm. However, the City and its authorized contractors shall be responsible to take reasonable precautionary measures including calling for utility locations and observing marker posts when working near Telephone Company facilities.

i. The Telephone Company, on the request of any applicant, shall remove or raise, or lower its wires temporarily to permit the moving of houses or other structures. The expense of such temporary removal, raising or lowering the wires shall be paid by the party or parties requesting the same, and the Telephone Company shall be given not less than fifteen (15) days’ written notice from the applicant detailing the time and location of the moving operations, and not less than twenty-four (24) hours advance notice :from the applicant advising of the actual operation. The City shall not be liable for any such expense or notice requirement for the moving of houses or structures by the City or its contractors.

j. Permission is hereby granted to the Telephone Company to trim trees upon and overhanging streets, alleys, sidewalks and public places of said City so as to prevent the branches of such trees from coming in contact with the wires and cables of the Telephone Company, all of said trinm1ing to be done under the supervision and direction of any City official to whom said duties have been or may be designated in accordance with Anthony City code.

k. All technical standards governing construction, reconstruction, installation, operation, testing, use, maintenance, and dismantling of the facilities in the rights-of-way shall be in accordance with applicable present and future federal, state, and City laws and regulations, including but not limited to the most recent editions of the National Electrical Code, the National Electrical Safety Code, and Fiber Optic Cable Installation Standard of the Telecommunications Industry Committee, or such substantive equivalents as may hereafter be adopted or promulgated. It is understood that the standards established in this paragraph are minimum standards and the requirements established or referenced in this ordinance may be additional to or stricter than such minimum standards.

l. The City encourages the conservation of right-of-way by the sharing of space by all utilities. To the extent required by Federal or State law, the Telephone Company shall permit any other franchised entity by appropriate contract or agreement negotiated by the parties to use any and all facilities constructed or erected by the Telephone Company. All said agreements and installations shall be the subject to all-existing and future ordinances and regulations of the City. Telephone Company agrees that it will not giant any entity rights to occupy the rights-of-way without providing notice to the City. Nothing in this section shall be construed as requiring Telephone Company to provide City notice when it provides Telecommunications Services to any entity.

SECTION 4. INDEMNITY AND HOLD HARMLESS

The Telephone Company shall hold and save the City, its officers, employees, agents, and authorized contractors, harmless from and against all claims, damages, expense, liability and costs including attorney fees, to the extent occasioned in any manner by the Telephone Company’s occupancy of rights-of-way, except to the extent otherwise specified in section 3 (i). In the event a claim shall be instituted against the City growing out of such occupancy of the right-of-way by facilities of the Telephone Company, then upon notice by the City to the Telephone Company, the Telephone Compai1y will assume liability for the defense of such actions at the cost of the Telephone Company, subject to the option of the City to appear and defend, at its ovn1 cost, any such case.

SECTION 5. PAYMENTS CHARGES

The payments herein provided shall be in lieu of all other licenses, taxes, charges, fees or impositions, except that the usual general property taxes and special ad valorem property taxes, and any charges for pavement cuts or other charges based on restoring premises to their same conditions, or charges made for privileges which are not in any way connected with telephone business, as such, will be imposed on the Telephone Company, and are not covered by the payments herein. The Telephone Company shall have the privilege of crediting such sums payable herem1der with any unpaid balance due said Telephone Company for telephone service rendered or facilities furnished to said City; provided, that said balance due is liquidated and uncontested.

SECTION 6. COMPENSATION TO CITY

a. In consideration of the franchise granted to Telephone Company by City, a sum of 4.5% of Telephone Company’s gross receipts per month for each access line served by Telephone Company for local service within the city limits of City. Compensation required by this franchise shall be paid on a quarterly basis. The number of access lines as of year-end shall be used to calculate payments to the City for the following year.

b. The parties agree that if federal law or state law is enacted setting forth a maximum allowable level of compensation for franchise rights and if such maximum allowable level is less than the level of compensation required by this ordinance, this ordinance shall require Telephone Company to pay the reduced level required by law the remainder of the term of this ordinance.

c. If during the term of this ordinance, Telephone Company believes that it is entitled to reduction in compensation pursuant to subsections (b) above, Telephone Company agrees to notify City in writing and agrees that it will continue to pay City a monthly rate set faith in section 6 (a) for each access line served by Telephone Company for Local Service within the city of City until final agreement is reached with the City sixty (60) days following such notice to City.

d. The Telephone Company shall correctly code all customers that are located within the corporate limits of the City, provided that the City shall give Telephone Company notice of boundary changes as provided below. Coding shall be updated to reflect annexation and other changes in City boundaries, and the associated changes in customers and access lines, within thirty (30) days of the elate City provides Telephone Company written notice of the a1mexation or other changes in boundaries and a listing of addresses affected by such changes. Such notice shall be sent to South Central Telephone Association, Inc., 101 S. Main, Medicine Lodge, Kansas 67104. In the event of annexations, Telephone Company may request additional time in writing to re-code customers, which request will not be unreasonably denied.

SECTION 7. COLLECTION OF COMPENSATION

Th.is franchise may be terminated by the Telephone Company if authority to collect the amounts of such payments or part of such payments, from its customers within the City shall be removed, canceled or withdrawn by legislative, judicial or regulatory act. City and Telephone Company acknowledge and agree that Telephone Company has collected and paid City all amounts clue and owing for Telephone Company’s use and occupancy of City rights-of-way at all times prior to July 7, 2015.

Compensation for each calendar year during the term of the contract franchise ordinance shall continue to be calculated in the manner set forth in Section 6a above unless the City notifies telephone company prior to 90 days before the end of the calendar year that it intends to increase or decrease the amount for access lines for the following calendar year or that it intends to switch to a gross receipt fee for the following calendar year. In the event City elects compensation based on a gross receipt fee, nothing herein precludes City from switching back to an access line fee provided City notifies Telephone Company prior to 90 days before the end of the calendar year that it intends to elect an access line fee for the following calendar year. Any increased access line fee or gross receipt fee shall be in compliance with the public notification procedures set forth in Subsections (l) and (m) of K.S.A. 2002 Supp. 12-2001.

SECTION 8. TERMINATION OF FRANCHISE

In case of failure on the part of Telephone Company, its successors and assigns, to comply with any of the provisions of this ordinance, or if Telephone Company, its successors and assigns, should do or cause to be done any act or thing prohibited by or in violation of the terms of this ordinance, Telephone Company, its successors and assigns, shall forfeit all rights and privileges granted by this ordinance and all rights hereunder shall cease, terminate and become null and void, provided that said forfeiture shall not take effect until the City of Anthony shall carry out the following proceedings. Before the City of Anthony proceeds to forfeit said franchise, as in this section prescribed, it shall first serve a written notice upon the manager of South Central Telephone Association, Inc. at its principal office in the City of Anthony, and upon the trustee or trustees in any deed of trust seeming bonds of Telephone Company of record in Barber County, Kansas, by mailing notice to such trustee or trustees to the address designated in such trust deed, setting forth in detail in such notice the neglect or failure complained of, and Telephone Company shall have ninety clays thereafter in which to comply with the conditions of this franchise. If at the end of such ninety-day period the City of Anthony deems that the conditions of such franchise have not been complied with by Telephone Company and that such franchise is subject to cancellation by reason thereof, the City of Anthony, in order to terminate such franchise, shall enact an ordinance setting out the grounds upon which said franchise or agreement is to be canceled or terminated. If within thirty days after the effective date of said ordinance; Telephone Company shall not have instituted an action, either in the District Court of Harper County, Kansas, or some other court of competent jurisdiction, to determine whether or not Telephone Company has violated the terms of this franchise and the franchise is subject to cancellation by reason thereof, such franchise shall be canceled and terminated at the end of such thirty-day period. If within such thirty-day period Telephone Company does not institute action, as above provided, to determine whether or not Telephone Company has violated the terms of this franchise and that the franchise is subject to cancellation by reason thereof and prosecutes such action to final judgment with due diligence, then, in that event, in case the co mi finds that the franchise is subject to cancellation by reason of the violations of its terms, this franchise shall terminate thirty days after such final judgment in rendered.

PROVIDED, however, that the failure of Telephone Company to comply with any of the provisions of this ordinance or the doing or causing to be done by Telephone Company of anything prohibited by or in violation of the terms of this ordinance shall not be a ground for the forfeiture thereof when such act or omission on the part of Telephone Company, its successors and assigns, is pursuant to bona fide legal proceedings.

SECTION 9. RIGHTS AND DUTIES OF GRANTEE UPON EXPIRATION OF FRANCHISE

Upon expiration of this franchise, whether by lapse of time, by agreement between the Telephone Company and the City of Anthony, or by forfeiture thereof, the Telephone Company shall have the right to remove from public property any and all of its lines, poles, towers and other appurtenances and equipment used in its said business within a reasonable time after such expiration, but in such event, it shall be the duty of the Telephone Company, immediately upon such removal, to restore the streets, avenues, alleys, parks and other public ways and grounds from which said lines, poles, towers, and other appurtenances and other equipment are removed to as good condition as the same was before said removal was effected.

SECTION 10. TERM AND TERMINATION DATE

The term of this franchise shall be five (5) years commencing July 7, 2015. The Telephone Company or City, at its option, shall have the right to extend this franchise upon the same te1ms and, conditions of a subsequent term of five (5) years, by providing written notice of its desire to extend the franchise not later than one hundred and eighty (180) days prior to the expiration of the initial term. The Telephone Company or City may reject the additional term by providing written notice within ninety (90) days of receipt of written notice of its desire to extend the franchise. The additional term shall be deemed a continuation of this franchise and not as a new franchise or amendment.

SECTION 11. ACCEPTANCE OF TERMS BY THE TELEPHONE COMPANY

The Telephone Company shall have sixty (60) days after the final passage and approval of this ordinance to file with the City Clerk of the City of Anthony its acceptance in writing of the provisions, terms and conditions of this ordinance, which acceptance shall be duly acknowledged before some officer authorized by law to administer oaths; and when so accepted the ordinance and acceptance shall constitute a contract between the City of Anthony and the Telephone Company subject to the provisions of the laws of the State of Kansas.

SECTION 12. RIGHT TO ASSIGN

This franchise shall be assignable only in accordance with the laws of the State of Kansas, as the same may exist at the time when any assignment is made.

SECTION 13. CONDITIONS OF FRANCHISE

This contract, franchise, grant and privilege is granted and accepted under and subject to all applicable laws and under and subject to all of the orders, rules and regulations now or hereafter adopted by governmental bodies now or hereafter having jurisdiction, each and every provision hereof shall be subject to Acts of God, fires, strikes, riots, floods, war and other causes beyond the Telephone Company’s control. This franchise shall not be exclusive.

SECTION 14. VENUE

This agreement shall be construed under and in accordance with the laws of the State of Kansas, and all obligations of the parties hereunder are performable in Barber County, Kansas. In the event that any legal proceeding is brought to enforce the terms of this agreement, the same shall be brought in Barber County, Kansas limited to state court action. Nothing in Section 16 shall be construed to limit or restrict Telephone Company’s right to initiate action in federal court (Kansas District) or to remove a state court action to federal court (Kansas District).

SECTION 15. NOTICE

For the purpose of this agreement, notice to the City will be to:

City Clerk/Administrator

City of Anthony

PO Box 504

124 S. Bluff

Anthony, Kansas 67003

Notice to the Telephone Company will be to:

South Central Telephone Association, Inc.

101 S. Main

Medicine Lodge, Ks. 67104

Notice will be effective upon delivery by hand delivery or by first class mail to the above address until the City or the Telephone Company notifies the other, in writing, of a change in address.

SECTION 16. PUBLIC PURPOSE

All of the regulations provided in this ordinance are hereby declared to be for a public purpose and the health, safety, and welfare of the general public. Any member of the governing body or City official or employee charged with enforcement of this ordinance, acting for the City in the discharge of his duties, shall not thereby render himself personally liable; and he is hereby relieved from all personal liability for any damage that might accrue to persons or property as a result of any act required or permitted in the discharge of his said duties. Neither the City not the Telephone Company by accepting this ordinance waives its right to seek all appropriate legal and equitable remedies as allowed by law upon violation of the terms of this ordinance, including seeking injunctive relief in a court of competent jurisdiction.

(07-07-2015)