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OR 98-825 Telecommunication definitions, fees & rules for government use AN ORDINANCE OF THE CITY OF COPPELL, TEXAS ORDINANCE NO. 98825 AN ORDINANCE OF THE CITY OF COPPELL, TEXAS, AMENDING CHAPTER 9 OF THE CODE OF ORDINANCES OF THE CITY OF COPPELL TO ADD ARTICLE 9-20, TELECOMMUNICATIONS; PROVIDING DEFINITIONS; PROVIDING FOR FEES; PROVIDING FOR RULES GOVERNING USE; PROVIDING A REPEALING CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY OF FINE NOT TO EXCEED THE SUM OF FIVE HUNDRED DOLLARS ($~00.00) FOR EACH OFFENSE; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS: SECTION 1. That Chapter 9 of the Code of Ordinances of the City of Coppell, Texas, be and the same is hereby amended in part to add Article 9-20 to provide regulations for the use of City rights-of-way by providers of Telecommunications Services to read as Collows~ "ARTICLE 9-20 TELECOMMUNICATIONS Sec. 9-20-1 FINDINGS AND PURPOSE A. The City Council makes the Following findings: (1) It is in the public interest to promote competition in telecommunications services and the availability of broadband transmission services to all residences and businesses. (2) It is in the public interest for the City to exercise the historical right to control access of and to manage the City's rights-of-way and to obtain reasonable compensation for the use of City propepty. (3) This article establishing rules governing the use ofthe City's rights- of-way is authorized by the City Chapter, and other State and Federal law. (B) The purpose of this article is to establish a competitively neutral policy for use of public rights-of-way for the provision of telecommunications services to enable the City~ Page - 1 - ss14343 (1) to permit non-discfiminatory access to the public fights-of-way for Proriders of telecommunications services; (2) to manage the public fights-of-way to minimize the effects and cost to the public of locating telecommunications facilities within the rights-of-way; (3) to obtain fair and reasonable compensation for the commercial use of public fights-of-way through collection of fees and charges; (4) to promote competition among telecommunications service providers and encourage the universal availability of modern telecommunications services to all residents and businesses of Coppell; and (5) to minimize congestion, inconvenience, visual blight and other adverse effects on the City's public fights-of-way. Sec. 9-20-2 AUTHORITY; SCOPE (A) This chapter applies to all telecommunication service proriders CProviders') under Subchapter II of the Communications Act of 1934, as amended, (47 U.S.C. 201 et seq.) ("Subchapter IF') excluding services provided solely by means of a wireless transmission, and as further defined below. No consent granted under this chapter authorizes the provision of any services not covered by Subchapter II. Cable service and open video systems as defined in Subchapter VI of the Communications Act of 1934 and any other content service are expressly excluded. (B) The right of a person to apply for or to use utility infrastructure shall be governed by this chapter. The grant of a municipal consent under this chapter does not grant attachment rights or authorize the use of utility infrastructure. Sec. 9-20-3 DEFINITIONS. For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. Affiliate means a person who controls, is controlled by, or is under common control with a Prorider. Aff'diate does not include a person who services end use customers by means of a wireless transmission. There is a rebuttable presumption of control if a Provider owns at least 25% of the a~Tdiate's stock or assets. Page -2- ss14343 Direct Cost means all expenses of a Provider for labor and materials associated with a specific activity or functions excluding overhead. City Manager means the City Manager of the City of Coppell, or the City Manager's designee. Director of Finance means the Director of the Finance Department of the City of Coppell, or the Director's designee. Director of Information Services means the Director of Information Services of the City of Coppell, or the Director's designee. Director of Public Works means the Director of the Public Works of the City of Coppell, or the Director's designee. Risk Manager means the Director of Human Resources and Administrative Services of the City of Coppell, or the Director's designee. Line means each access line consisting of transmission facilities connected between the end use customer's premises network interface within the City and the telecommunications Provider's serving facilities, (these serving facilities include: central office facilities, distribution frame facilities of other similar facilities) that allow delivery of telecommunications services within the City; or each channel termination point or points of a non- switched telephone circuit, or high capacity circuit dedicated for transmission of voice, data, and imaging between specific locations identified by an end use customer. Municipal Consent means the right granted by ordinance to a person to use public rights-of-way to provide telecommunications services within the city to the public or to other providers. Payment Year means October I of one year through September 30 of the following. Person means an individual, corporation, association, partnership, or other entity. Pr0vider means a person that delivers telecommunication services within the city to the public and either: (1) has been granted a certificate under Art. 1446c-O, Title 3 V.A.C.S. ("PUPA 95") or other certificate; or Page -3- ssi4343 (2) operates or uses a telecommunications network within the city; or (3) directly or indirectly owns, controls, operates or manages plant, equipment or property within the public rights-of-way in the City, used or to be used for the purpose of offering telecommunications service. Provider does not include persons who are authorized by the city to occupy the public fights-of-way in specifically approved routes within the city, unless they have a consent under this Chapter. Provider does not include persons who are repurchasers of services or have purchased access to a Provider's network, but have no ownership interest in the network. Public Rights-of-Way means the surface, the air space above the surface, and the area below the surface of a public street, highway, lane, path, alley, sidewalk, boulevard, drive, bridge, tunnel, easement, or similar property in which the City holds a property interest or exercises rights of management or control. Telecommunicatlons Services means all transmissions between or among points identified by the user, of information of the user's choosing, including voice, imaging or data, without change in content of the information as sent and received, if the transmissions are accomplished through a telecommunication network. Telecommunication services includes ancillary or adjunct switching services and signal conversions rendered as a function of underlying transmission services, but excludes long distance transmissions, interLATA (local access transport area) and intraLATA toll transmissions. Telecommunication services only includes Subchapter II services and expressly excludes cable services or open video systems as defined in Subchapter iV of the Communications Act of 1934, as amended, and other content services. Access Lines means the transmission facilities connected between the end use customer's premises network interface within the City and the serving facilities (including but not limited to, central office facilities, distribution frame facilities, or other similar facilities) which provide access to the local and toll switched network. The term Access Lines does include Termination Point. A Provider's Interoffice-transport and other transmission facilities that do not terminate at the end-use customer's network interface device are not lines that would be separately identified for calculation of the municipal consent fee. Page -4- ss14343 Termination Point means each channel termination point or points dedicated for the use between specific locations within the City by a end use customer. Telecommunications Facilities means the plant, equipment and property, including but not limited to cables, wires, conduits, pedestals, poles, antennae, electronic and other appurtenances used or to be used to transmit, receive, distribute, provide or offer telecommunications ser,,ice. Telecommunications Provider means and includes every person who provides te]ecommunications service over telecommunications facilities without any ownership or management control of the facilities. Sec. 9-20-4 TELEVISION/ENTERTAINMENT SERVICES Except as otherwise provided herein, any Prorider who desires to construct, install, operate, maintain or locate telecommunications facilities on City property or in any public rights-of-way For the purpose of providing any services subject to the Cable Television Consumer Protection and Competition Act of 1992, or any subsequent amendment, to persons in the City shall first obtain a required franchise from the City. Sec. 9-20-5 MUNICIPAL CONSENT REQUIRED. A. A person may not deliver telecommunications in the City by means of a te]ecommunications facilities within the rights-of-way unless the municipal consent has been obtained from that network. B. The use of public rights-of-way for the delivery of any service not covered by this chapter are subject to all other applicable City requirements. Sec. 9-20-6 APPLICATION FOR MUNICIPAL CONSENT. A. A person must submit an application to the Director of Information Services to grant, renew, extend, amend, or transfer a municipal consent. B. The application must be on a form prescribed by the Director of Information Services, and it must include the following: (1) a description of the services to be provided; (2) an outline of the applicant's proposed network, if any, and (3) a description of the effect on the public rights-of-way, if any. Page -5- ss14343 C. Each applicant shall submit a non-refundable application fee with the application, in an amount to be established by Resolution of the City Council. D. The ordinance shall have no affect on any existing franchise ordinance or franchise agreement until: (1) the expiration of said franchise ordinance or agreement; or (2) an amendment is added to an unexpired franchise ordinance or franchise agreement, unless both parties agree to defer full compliance to a specific date not later than the present expiration date. Sec. 9-20-7 RECOMMENDATION ON APPLICATION. The Director of Information Services and the Telecommunication Board shall review an application submitted under this article. The Telecommunication Board shall make a recommendation to the City Council that it grant or deny the application. The Director shall present the recommendation to the City Council no later than the 90th day after an application is filed. Sec. 9~20-8 MUNICIPAL CONSENT ORDINANCE. A. If the Director of Information Services finds that the application meets the requirements of this chapter, the Director shall request the City Attorney to prepare a municipal consent ordinance for the City Council's consideration. B. A municipal consent ordinance submitted to the City Council must include the following provisions: (1) a term of no less than one year and no more than three years for the consent agreement, as requested by the applicant in the application; (2) a requirement that the Provider comply with this chapter; (3) a requirement that the Provider's municipal consent is subject to termination by the City Council, after notice and hearing, for the Provider's failure to comply with this chapter or on a showing that the Provider has breached the terms of the municipal consent; (4) a provision that incorporates the requirements of Sections 9-20-19, 9-20-20, and 9-20-21 of this chapter; and Page -6- ss14343 (5) a provision that allows for adjustments to the municipal consent fee calculation method with the agreement of the Provider, if the fees authorized by this article are changed by the City Council. Sec. 9-20-9 PETITION FOR RECONSIDERATION The act of granting, amending, denying or terminating a municipal consent is a legislative function within the discretion of the City Council. A person whose application for a municipal consent is denied, is not considered by the City Council on or before the 451h day after the Director submits a recommendation under 9- 20-6, or whose municipal consent is terminated must petition the City Council for reconsideration before seeking judicial remedies. A petition is considered denied if the City Council does not act within 45 days after the petition is filed with the City. Sec. 9-20-10 ADMINISTRATION AND ENFORCEMENT. A. The Director of Information Services shall administer this article and enforce compliance with a municipal consent granted under this article. B. A Provider shall report information that the Director requires in the form and manner prescribed by the Director relating to the use of public fights- of-way for the telecommunications services authorized by a municipal consent granted under this article. C. The Director shall report to the City Council the Director's determination that a Provider has failed to comply with this article. Sec. 9-20-11 APPLICABILITY. A. The requirement of obtaining municipal consent applies only to Providers that own or control physical telecommunication facilities in the public fight-of-way. All Providers assume full liability and responsibility for compliance with this Article, as it relates to all telecommunication facilities owned or controlled by them, including those portions, if any, which have been resold, leased to, or are otherwise used by other persons. B. Whenever applicable, Providers must file a report with the Director indicating those lines, bundles, or other facilities subject to the municipal consent which are, or will, be utilized by some person other than the Provider. This report must provide information regarding the identity of the other person(s), the underlying agreement for use of the facilities, and any other information required by the Director regarding the use of the Provider's facilities by other parties. Page -7- ss14343 Sec. 9-20-12 COMPENSATION TO CITY. A. To compensate the City for the use and occupancy of the public fights-of- way, a Provider shall pay a municipal consent fee calculated as follows: (1) Municipal consent fee: (a) Following the effective date of this article, a provider shall submit to the Director of Finance on a quarterly basis a certified statement, with the municipal consent fee payment, indicating the number of lines used to provide telecommunications services at month end, for each month of the quarter, excluding any line leased by or used to deliver services by providers that remit municipal consent fees directly to the City. The statement shall be provided on a form prescribed by the Director of Finance. The due dates shall be May 15, August 15, November 15 and February 15. (b) The Provider may exclude from the statement any line leased or used by a person other than the Provider, only if prior arrangements have been made between the Provider and the City to allow the aforementioned person to remit the municipal consent fees associated with those lines directly to the City. The Prorider is fully and solely responsible for ensuring submittal of a statement and payment as required by this Article for any telecommunications facilities lines used, and for ensuring payment by any third person under the aforementioned arrangement. (c) For each month of the quarter a Provider shall pay a municipal consent fee based on its number of lines calculated as follows: Monthly Amount To be established by Resolution of the City Council (d) The Director of Finance shall notify a Provider of the amount it owes if the consent fee is in error. (2) Adjustments to municipal consent fee: Page -8- ss14343 (a) For each payment year, after the year of enactment of the Resolution establishing the municipal consent fee amounts, the municipal consent fee shall be determined by multiplying the previous year's line calculation amounts set forth in Subsection (A) (1) of this section by a growth factor. The growth factor is calculated by dividing the total of all the Provider's aggregate revenue subject to the state telecommunications sales tax, under TEX. TAX CODE ANN. 151.0103, for the twelve month period ending June 30 of the current year (payment year minus one) by the aggregate revenue subject to the state telecommunications sales tax for the twelve month period ending June 30 of the preceding year (payment year minus two years.) (b) A Provider shall report to the Director of Finance revenue subject to the state telecommunications sales tax within Coppell on August 15 of each year in a form prescribed by the Director consistent with this section. (c) On or before September 1, the Director shall notify each provider of the municipal consent fee applicable for the subsequent payment year. (d) In the event of a substantial change in services subject to the state telecommunications sales tax or other changes substantially affecting the appropriateness of the municipal consent fee considering the purposes of this article, the City Council may adopt an alternative method of calculating the growth factor to result in substantially the same aggregate fee amounts, or establish a new municipal consent fee. B. A Provider that does not own or operate a network and that demonstrates to the City that the lines it utilizes for resale of services from other providers are included in the other Provider's fee calculation is not required to comply with the payment requirement of Sec. 9-20-12 A(1)(b). A Provider excluded from payment requirements pursuant to this section shall report to the Director changes in operation that may affect the availability of this payment option before the end of the quarter in which payment would otherwise be required. C. A Provider may pass through to customers the municipal consent fee on a prorata basis at its discretion, as permitted by state law. The fee calculation amounts set forth in Subsection (A) are established solely for the purpose of allocating the fee fairly. The amounts set forth are not Page -9- ss14343 intended to represent, nor does the City require or recommend, a charge on a per line or customer basis. See. 9-20-13 FEE PAYMENTS. A. A prorider shall remit the required municipal consent fee on a quarterly basis together with the certified statement required in Section 9-20-12 A(1)(a) by wire transfer to an account designated by the Director of Finance. B. Payment shall be made on or before the 45th day following the dose of each calendar quarter for which the payment is calculated. C. The Director may waive the requirement of the wire transfer. Sec. 9-20-14 AUDITS A. On 30 days notice to a Provider the City may audit a Prorider at any time. The Provider shall furnish information to demonstrate its compliance with the consent. B. A Prorider shall keep complete and accurate books of accounts and records of business and operations in accordance with generally accepted accounting principles for a period of five years. If the Federal Communications Commission requires, a Prorider shall use the system of accounts and the forms of books, accounts, records and memoranda prescribed in 47 CFR Part 32 or its successor. The Director of Finance may require the keeping of additional records or accounts that are reasonably necessary for purposes of identifying, accounting for, and reporting the number of lines used to deliver telecommunications services. The City may examine the Provider's books and records. C. A Provider shall make available to the City, for the City to examine, audit, review and copy, in Coppell, on the Director's reasonable written request (45 day notice), its books and records including papers, books, accounts, documents, maps, plans and other Provider records pertaining to a municipal consent granted under this chapter. A Provider shall fully cooperate in making records available and otherwise assist the City. The City shall not make copies of customer-specific information. The City's right to examine a Provider's books and records expressly excludes the right to examine any records, documents or other writings the disclosure of which is prohibited by State or Federal law. Page -10- ss14343 Sec. 9-20-15 TRANSFER A. A Prorider may not transfer a municipal consent unless the City Council approved the transfer by ordinance. B. A change in control of a Prorider is a transfer requiring City Council approval. A change of 25 percent or greater in the ownership of the Prorider establishes a rebuttable presumption of a change in control. C. If a Provider attempts to transfer or transfers the Provider's municipal consent without approval of the City Council, the City Council may revoke the municipal consent. If a municipal consent is revoked, all rights of the Prorider, and any other person using lines under the consent end. D. A Provider may transfer, without City Council approval, the facilities in the rights-of-way under a municipal consent to the Provider's affiliate or to another Prorider who has a municipal consent under this chapter. The Prorider transferring the facilities remains subject to all applicable obligations and provisions of the municipal consent unless the Prorider to which the facilities are transferred is also subject to these applicable obligations and provisions. The Prorider transferring must give written notice of the transfer to the City Manager under the requirements of Section 18-8-15 D. Sec. 9-20-16 NOTICES TO CITY A. A provider shall notify the Director of Information Services in writing contemporaneously with the transmittal of all petitions, applications, written communications, and reports submitted by the Prorider, to the Federal Communications Commission and the Public Utility Commission, or their successor agencies relating to matters affecting both the use of public rights-of-way and the telecommunications services authorized by a municipal consent. It is not the Council's intent that failure to comply with this section constitutes and automatic breach of a municipal consent. In case of a failure to comply, a Provider shall have an additional 15 days to furnish the documents. B. If a Prorider notifies the City of the confidential nature of information, the Director shall maintain the con~dentiality of the information to the extent permitted by law. C. A Prorider shall submit to the City on an annual basis the amounts reported to the State Comptroller of Public Accounts regarding revenue subject to Page - 11 - ss14343 the state telecommunication sales tax in the City, as described in Section 9- 20-12 A(2)(a). D. A Prorider shall give written notice to the City not later than 15 days before a transfer or change in operations that may affect the applicability of Sections 9-20-17, 9-20-18, 9-20-19, 9-20-20, and 9-20-21 to the Provider. Sec. 9-20-17 CIRCUMVENTION OF FEE PROHIBITED A person may not circumvent payment of municipal consent fees or evade payment of fees by battering, transfer of rights, or by any other means that result in undercounting a Provider's number of lines. Capacity or services may be battered if the imputed lines are reported in accordance with Section 9-20-12. Sec. 9-20-18 REVOCATION OR TERMINATION OF MUNICIPAL CONSENT A municipal consent granted by the City to use or occupy City property or public rights-of-way may be revoked for the following reasons: (1) Construction on City property or in the public rights-of-way at an unauthorized location; (2) Unauthorized sale, assignment or transfer of Grantee's municipal consent, or a substantial interest therein. (3) Misrepresentation of a material fact by a Grantee or any of Grantee's officers, employees or agents in any application to the City. (4) Unauthorized abandonment oftelecommunications facilities on City property or in the public fights-of-way. (5) Failure to relocate or remove facilities or the failure to reimburse the City for the involuntary relocation or removal of facilities as required in this ordinance. (6) Failure to pay compensation, fees or costs when and as due to the City. (7) Insolvency or bankruptcy of the Grantee. (8) Violation of material provision of this ordinance. (9) Violation of the material terms of a franchise agreement. Page - 12- ss14343 Sec. 9-20-19 CONSTRUCTION OBLIGATIONS. A. A Provider is subject to the police powers of the City, other governmental powers, and the City's rights as a property owner under State and Federal laws. A Provider is subject to City requirements and federal and state rules in connection with the construction, expansion, reconstruction, maintenance or repair of facilities in the public rights-of-way. B. A Provider shall place certain facilities underground according to applicable City requirements. C. At the City's request, a Provider shall furnish the City accurate and complete information relating to the construction, reconstruction, removal, maintenance, operation and repair of facilities performed by the Provider in the public rights-of-way. If any information furnished is erroneous as to the location of facilities, and reliance on this information results in construction delays or additional expenses, the Provider who furnished the erroneous information shall be liable for the cost of delays and the additional expenses. D. The construction. expansion, reconstruction, excavation, use, maintenance and operation of a Provider's facilities and property are subject to applicable City requirements. (1) A Provider shall perform excavations and other construction in the public rights-of-way in accordance with all applicable City requirements, including the obligation to use trenchless technology whenever possible. A Provider shall minimize interference with the use of public and private property and shall follow the construction directions given by the City. (2) When a Provider completes construction work, a Provider shall promptly restore the public rights-of-way in accordance with applicable City requirements. All trees, landscaping, irrigation systems, and grounds removed, damaged or disturbed as a result of the construction, installation, maintenance, repair or replacement of telecommunications facilities shall be replaced or restored in accordance with streetscape plans. Upon request of Provider, the City will undertake restoration of landscaping and grounds and will bill Provider for applicable costs and charges connected with materials and labor. A Provider may excavate only for the construction, installation, expansion, repair, removal, and maintenance of the Provider's facilities. Page - 13 ~ ss 14343 (3) The City may require a Provider to allow attachment of another Provider's facilities to its poles and conduits, in accordance with State and Federal law. (4) A Provider shall furnish the Director of Public Works with construction plans and maps showing the routing of new construction at least 45 days before beginning construction that involves an alteration to the surface or subsurface of the public fight-of-way. A Provider may not begin construction until the plans and drawings have been approved in writing by the Director of Public Works. (5) If the Director declares an emergency and requests the removal or abatement of facilities, by written notice, a Provider shall remove or abate the Provider's facilities by the deadline provided in the Director's request. A Provider and the City shall cooperate to the extent possible to assure continuity of service. If a Provider, after notice, fails or refuses to act, the City may remove or abate the facility, at the sole cost and expense of the Provider, without paying compensation to the Provider and without the City incurring liability for damages. (6) Except in an emergency, a Provider may not excavate the pavement of a street or public right-of-way without first complying with City requirements. (7) Within 120 days of completion of each new segment ofa Provider's facilities, a provider shall supply the City with a complete set of "as built" drawings for the segment in a format prescribed by the Director of Public Works. A Provider must obtain the City's approval before relocating the Provider's facilities in the public rights-of-way. The City may not reasonably withhold approval. A Provider shall furnish a revised map including additional facilities on June 30 of each year to the Director of Public Works showing how these facilities connect to existing facilities. Sec. 9-20-20 CONDITIONS OF RIGHTS-OF-WAY OCCUPANCY. A. In the exercise of governmental functions, the City has first priority over all other uses of the public rights-of-way. The City reserves the right to lay sewer, gas, water, and other pipe lines or cables and conduits, and to do underground and overhead work, and attachment, restructuring or changes in aerial facilities in, across, along, over or under a public street, alley or Page - 14 - ss 14343 right-of-way occupied by a Provider, and to change the curb, sidewalks or the grade of streets. B. The Director of Public Works shall assign priorities among competing uses of the public rights-of-way according to the order of completed permit applications. C. If, during the term of a municipal consent, the City authorizes abutting landowners to occupy space under the surface of any public street, alley, or rights-of-way, the grant to an abutting landowner shall be subject to the rights of the prorider. If the City closes or abandons a public right-of-way that contains a portion of a provider's facilities, the City shall convey the land in the closed or abandoned public right-of-way subject to the fights granted in the municipal consent. D. lfthe City gives written notice, a Prorider shall, at the Provider's expense, temporarily or permanently, remove, relocate, change or alter the position of Provider's facilities that are in the public rights-of-way within 120 days. The City shall give notice whenever the City has determined that removal, relocation, change or alteration is reasonably necessary for the construction, operation, repair, maintenance, or installation of a City or other governmental entity's public improvement in the public rights-of- way. This section shall not be construed to prevent a Provider's recovery of the cost of relocation or removal or from governmental entities that have funds authorized for the payment of the relocation or removal costs. In the event of joint relocation projects, a Prorider shall be responsible for its proportionate share of the relocation costs. E. During the term of its municipal consent, a Prorider may trim trees in or over the rights-of-way for the safe and reliable operation, use and maintenance of its network. All tree trimming shall be performed in accordance with standards promulgated by the City, if applicable. When ordered by the City Manager, tree trimming shall be done under the supervision of the City. F. A Prorider shall temporarily remove, raise or lower its aerial facilities to permit the moving of houses or other bulky structures, if the moving company gives written notice of no less than 48 hours to the Prorider. The expense of the temporary rearrangement shall be paid by the party or parties requesting and benefiting from the temporary arrangement. The Provider may require prepayment or prior posting of a bond from the party requesting the temporary move. Page - 15- ss14343 Sec. 9-20-21 INSURANCE REQUIREMENTS A. A Prorider shall obtain and maintain insurance in the amounts prescribed by the City Manager with an insurance company licensed to do business in the State of Texas acceptable to the City Manager throughout the term of a municipal consent granted under this chapter. A Prorider shall furnish the City with proof of insurance at the time of filing the acceptance of a municipal consent. The City reserves the right to review the insurance requirements during the effective period of a municipal consent, and to reasonably adjust insurance coverage and limits when the City's Risk Manager determines that changes in statutory law, court decisions, or the claims history of the industry or the Prorider require adjustment of the coverage. For purposes of this section, the City will accept certificates of self-insurance issued by the State of Texas providing the same coverage. B. The City Manager may, on request and at no cost to the City, receive copies of certificates of insurance evidencing the coverage required by this section. The City Manager may request the deletion, revision or modification of particular policy terms, conditions, limitations or exclusions, unless the policy provisions are established by a law or regulation binding the City, the Provider, or the underwriter. If the City Manager requests a deletion, revision or modification, a Provider shall exercise reasonable efforts to pay for and to accomplish the change. (1) An insurance certificate shall contain the following required provisions: (a) name the City of Coppell and its officers, employees, board members and elected representatives as additional insureds for all applicable coverage; (b) provide for 30 days notice to the City for cancellation, non- renewal, or material change; (c) provide that notice of claims shall be provided to the Office of Risk Management by certified mail; (d) provide that the terms of the municipal consent which impose obligations on the Prorider concerning liability, duty and standard of care, including the indemnity section, are included in the policy and that the risks are insured within the policy terms and conditions. Page -16- ss14343 C. A Provider shall file and maintain proof of insurance with the Risk Manager during the term of a municipal consent or an extension or renewal. An insurance certificate obtained in compliance with this section is subject to City approval. The City may require the certificate to be changed to reflect changing liability limits. A Prorider shall immediately advise the City Manager of actual or potential litigation that may develop that would affect insurance coverage related to a municipal consent. D. An insurer has no right of recovery against the City. The required insurance policies shall protect the prorider and the City. The insurance shall be primary coverage for losses covered by the policies. E. The policy clause "Other Insurance" shall not apply to the City of Coppell where the City is an insured under the policy. F. The Provider shall pay premiums and assessments. A company which issues and insurance policy has no recourse against the City for payment of a premium or assessment. Insurance policies obtained by a Prorider must provide that the issuing company waives all fight of recovery by way of subrogation against the City in connection with damage covered by the policy. See. 9-20-22 INDEMNITY A. During the term of a municipal consent, a prorider is liable for the acts or omissions of an entity used by the prorider, including an affiliate, when the entity is involved directly or indirectly in the construction and installation of the provider's facilities. The acts or omissions of the entity shall be considered the acts or omissions of the prorider. B. Each municipal consent granted under this chapter shall contain a provision that requires a prorider to defend, indemnify and hold the City harmless against all damages, cost, loss or expense arising out of, incident to, concerning or resulting from the negligence or willful misconduct of the prorider, its agents, employees, or subcontractors, in the performance of activities under the municipal consent for: ( l ) the repair, replacement, or restoration of City property, equipment, materials, structures and facilities which are damaged, destroyed or found to be defective; and (2) any and all claims, demands, suits, causes of action, and judgments for: Page - 17- ss 14343 (a) damage to or loss of the property of any person including, but not limited to the provider, its agents, officers, employees, and subcontractors, the City's agents, officers and employees, and third parties; and (b) death, bodily injury, illness, disease, worker's compensation, loss of services, or loss of income or wages to any person including but not limited to the agents, officers, and employees of the prorider, the provider's subcontractors, the City, and third parties, no matter how, or to whom, the loss may occur. C. The Risk Manager shall give prompt written notice to a Provider of any claim for which the City seeks indemnification. The Provider shall have the right to investigate, defend and compromise these claims subject to the City's prior approval. Sec. 9-20-23 RENEWAL OF MUNICIPAL CONSENT A Provider shall request a renewal or a new consent by making written application to the Director of Information Services at least six months before the expiration of the consent. Sec. 9-20-24 PRIVACY OF CUSTOMER INFORMATION. A Provider shall comply with state and federal law regarding privacy of customer information. Sec. 9-20-25 ANNEXATION; DISANNEXATION. In the event that the City either annexes territory from outside the boundaries of the City or disannexes territory from within the boundaries of the City, the City shall notify the Providers in writing of any annexation or disannexation within thirty days following the date of passage of any action effecting the boundary change, providing them with maps of the affected area. In accordance with the rules of the Texas Comptroller of Public Accounts for the purposes of the local sales and use tax, each Provider shall begin including in its monthly line count the Access Lines and Termination Points within the annexed area on the date made applicable for the imposition of local use and tax, but in no event earlier than thirty days from the date on which the City provides its notification. P age - 18 - ss 14343 Sec. 9-20-26 UNAUTHORIZED USE OF PUBLIC RIGHTS-OF-WAY. A. A person commits an offense if a person uses the public rights-of-way to provide a telecommunications service that has not been authorized by the City. B. A person commits an offense if a person places facilities on public structures or utility infrastructure to provide a service not allowed under the terms of a municipal consent or other authorization. C. A person commit an offense if the person fails to comply with Section 18- 8-15 (D). D. Each unauthorized use of the public rights-of-way and each unauthorized placement of facilities constitutes a separate offense. Each day a violation of this chapter occurs shall constitute a distinct and separate offense. E. An offense under this section is a class C misdemeanor, punishable by a fine of no less than $500. SECTION 2, That all provisions of the Code of Ordinances of the City of Coppell, Texas, in conflict with the provisions of this ordinance be, and the same are hereby, repealed, and all other provisions not in conflict with the provisions of this ordinance shall remain in full force and effect. SECTION 3. That should any word, phrase, paragraph, section or phrase of this ordinance or of the Code of Ordinances, as amended hereby, be held to be unconstitutional, illegal or invalid, the same shall not affect the validity of this ordinance as a whole, or any part or provision thereof other than the part so decided to be unconstitutional, illegal or invalid, and shall not affect the validity of the Code of Ordinances as a whole. SECTION 4. An offense committed before the effective date of this ordinance is governed by prior law and the provisions of the Code of Ordinances, as amended, in effect when the offense was committed and the former law is continued in effect for this purpose. Page -19- ssi4343 SECTION 5. That any person, firm or corporation violating any of the provisions of this ordinance or of the Code of Ordinances, as amended hereby, shall be deemed guilty of a misdemeanor and, upon conviction in the municipal court of the City of Coppell, Texas, shall be subject to a fine not to exceed the sum of five hundred dollars ($500.00) for each offense, and each and every day said violation is continued shall constitute a separate offense. SECTION 6. That this ordinance shall take effect immediately from and after its passage and the publication of the caption, as the law and charter in such cases provide. DULY PASSED by the City Council of the City of Coppell, Texas, this the 7--4- - day of APPROVED: ATTEST: KATHLEEN ROACH, CITY SECRETARY APPROVED AS TO FORM: PETER G. SMITH, ~RNEY (PGS/rmuf 3~23~98) Page -20- ss14343