Loading...
1993-06-22 CC MinutesCITY OF FARMERS BRANCH CITY COUNCIL SPECIAL MEETING AND BUDGET WORKSHOP AGENDA CITY HALL PLAZA COUNCIL CONFERENCE ROOM JUNE 22, 1993 5:00 P.M. The following members of the City Council were present: Mayor Mayor Pro Tem Councilmembers Dave Blair Calla Davis Ron Pyle Bill Moses Nancy Hardie Bob Phelps The following members of the City Administration were present: City Manager Assistant City Manager Assistant City Manager City Secretary Communication Director Director of Community Services City Engineer Acting Director of Finance Director of Parks & Recreation Director of Personnel Library Director Police Chief Director of Public Works City Management Assistant Recording Secretary A.1 MAYOR BLAIR WILL CALL THE MEETING TO ORDER. Richard L. Escalante Steve Carpenter John Burke Ruth Ann Parish Donna Huerta Tom Scales Jerry Murawski Debbie Champion Jeff Fuller Judy Conley Mary Jane Stevenson Jimmy Fawcett Mark Pavageaux David Reedy Cindee Peters Mayor Blair called the City Council Meeting of June 22, 1993 to order at 5:20 P.M.. A.2 CONSIDER ORDINANCE NO. 2056 GRANTING A STREET USE AND RENTAL AGREEMENT TO METROPOLITAN FIBER SYSTEMS OF DALLAS, INC. FOR Vol. 64, Page 127 THE PURPOSE OF OPERATING A FIBER OPTICS NETWORK WITHIN THE CITY OF FARMERS BRANCH AND TAKE THE APPROPRIATE ACTION. Mayor Blair gave the following information. Metropolitan Fiber Systems of Dallas, Inc. (MFS), has approached the City of Farmers Branch and desires to enter into a street use and rental agreement with the City of Farmers Branch to provide a Fiber Optics Network within the City of Farmers Branch. Ordinance No. 2056 would provide for such an agreement. The Fiber Optics Network would initially provide telecommunications services to businesses on the east and west side of Farmers Branch and would be part of the proposed expansion of services by Metropolitan Fiber Systems of Dallas, Inc. which would span 91 miles. The expansion would link areas of Farmers Branch, Plano, Richardson, Carrollton, Addison and Dallas. Currently, Metropolitan Fiber System of Dallas, Inc. operates over 30 miles of fiber optics in the City of Dallas. Metropolitan Fiber System of Dallas, Inc. provides their customers with telecommunications services including voice, video, high-speed data and systems integration. The street Television service unless a Cable Franchise is applied for and granted separately. The street use and rental agreement provides a 5% street use and rental fee based on gross receipts generated in Farmers Branch. The length of the agreement is ten years. Representatives from Metropolitan Fiber System of Dallas, Inc. will be present to discuss this item. City staff recommends approval of Ordinance No. 2056 granting a street use and rental agreement to Metropolitan Fiber System of Dallas, Inc. Mr. Steve Carpenter, Assistant City Manager, stated this item was on the last City Council agenda which was tabled by the City Council. Mr. Carpenter stated there were no substantial problems with the ordinance only a few minor changes. Mr. Carpenter stated Mr. Jay Hamm and Mr. Chris Malownowski were present representing Metropolitan Fiber System of Dallas, Inc. Mr. Chris Malownowski, Dallas City Manager of Metropolitan Fiber System of Dallas, Inc., gave a brief history of the breakup of the Bell Telephone Company. Mr. Malownowski stated the breakup caused long distance rates to decrease from approximately .53C to sub .10C a minute. Mr. Malownowski stated businesses do not have much of a choice when choosing a dial tone for their company. Mr. Malownowski stated his company was five years old and owned by Peter Kiweit and Sons. Mr. Malownowski stated they now have 14 networks across the country which can bring in a host of new products. Vol. 64, Page 128 Mayor Blair asked Mr. Malownowski what was carried over the network. Mr. Malownowski stated the primary product was voice. Mr. Malownowski stated this was done by digital transmission. Mr. Malownowski stated long distance phone companies worked as partners with M.F.S. Mr. Malownowski stated M.F.S. provides better services to the long distance companies and they are able to enhance their product to the end user. Mayor Blair asked Mr. Malownowski if a company would contract with M.F.S. or what they do for a company. Mr. Malownowski stated a company could subscribe to services they offer on a month to month basis or longer. Mayor Blair asked does this basically give him voice access to the long distance that I want or use. Mr. Malownowski stated this is primarily what we provide at this time. Mr. Malownowski stated every long distance carrier and their network comes to an end at some point in the City. Mr. Malownowski stated their jurisdiction ends and the local telephone company has an embedded infrastructure which most of it is copper but it ties back to these long distance companies via the embedded infrastructure. Mr. Malownowski stated that M.F.S. has an advantage in that they don't have an embedded infrastructure or an appreciation schedule to maintain for a period of years. Mr. Malownowski stated MFS is able to provide state of the art technology to even smaller subscribers. Mayor Blair asked if M.F.S. could access local services too. Mr. Malownowski stated this regulatory change has recently allowed for M.F.S. to interconnect with the local telephone company. Mayor Blair asked if a company has a link up with AT & T would he have to dial through Southwestern Bell to get on your network or dial direct. Mr. Malownowski stated you could dial direct. Mayor Blair stated that all governments including local governments are in a cash crunch. Mayor Blair asked why the City should ask for a 4% franchise fee rather than a 5 % franchise fee. Mr. Jay Hamm, Director of Development for M.F.S., stated that 4% is a more customary charge rather than 5 % for this type service. Mr. Hamm stated the company is expanding in Dallas and would like to stay with a 4 % franchise fee. Mr. Hamm stated Vol. 64, Page 129 Plano had negotiated a 5 % fee under very different circumstances. Mr. Hamm stated the 5 % franchise fee may not sound like very much money but we look at the 5 % of the gross that is more than 20% of our net and a bigger percent of our profit. Mr. Hamm stated the 1 % difference will enable M.F.S. to go further into the business community to provide services. Mr. Hamm stated he believe the 4 % would yield more in the long run than the 5 % franchise fee. Mayor Blair stated he understood that M.F.S. has a signed contract with the City of Dallas for a 4 % franchise fee. Mayor Blair asked if they had a contract with any other cities. Mr. Hamm stated they are applying for a contract in Addison, Plano, Richardson, Carrollton, and Farmers Branch. Mr. Carpenter stated that another competitor by the name of Teleport has a contract with Plano for a 5 % franchise fee. Mayor Blair asked if a clause could be incorporated into Ordinance 2056 to negotiate with M.F.S. if another city receives more than a 4% franchise fee from M.F.S. Mr. Hamm and Mr. Malownowski stated they had no problem with the additional clause added to the ordinance. A motion by Mayor Pro Tem Davis, a second by Councilman Pyle, all voting "aye", adopted the following captioned Ordinance 2056 granting a street use and rental agreement to Metropolitan Fiber System of Dallas, Inc. , with the addition of a clause that that Farmers Branch will be paid a higher franchise fee if any other municipality is granted a higher rate than 4 AN ORDINANCE OF THE CITY OF FARMERS BRANCH, TEXAS, GRANTING TO METROPOLITAN FIBER SYSTEMS OF DALLAS, INC. A STREET USE AND RENTAL AGREEMENT FOR THE PURPOSE OF CONSTRUCTING, MAINTAINING AND OPERATING ITS FIBER OPTIC NETWORK IN PUBLIC STREETS, ALLEYS, AND RIGHTS-OF-WAY IN THE CITY OF FARMERS BRANCH; PROVIDING FOR THE CONDITIONS GOVERNING THE CONSTRUCTION, EXPANSION, USE, RECONSTRUCTION, EXCAVATION, MAINTENANCE AND OPERATION OF A FIBER OPTIC NETWORK; PROVIDING FOR A BOND AND INSURANCE; PROVIDING FOR THE REGULATION OF WORK BY OTHERS, CONSTRUCTION BY ABUTTING OWNERS AND REQUIRING ALTERNATION TO CONFIRM WITH PUBLIC IMPROVEMENTS; PROVIDING FOR THE CITY'S RIGHT TO USE CERTAIN PORTIONS OF THE FIBER OPTIC NETWORK; PROVIDING FOR COMPENSATION FOR THE PRIVILEGES CONFERRED UNDER THIS STREET USE AND RENTAL Vol. 64, Page 130 AGREEMENT; PROVIDING FOR ACCOUNTING AND OTHER INFORMATION; PROVIDING FOR CONDITIONS CONCERNING RENEWAL; PROVIDING FOR CONDITIONS OF TRANSFER OR ASSIGNMENT; PROVIDING AN INDEMNITY CLAUSE; PROVIDING FOR A LOCAL OFFICE; PROVIDING FOR CONSEQUENCES OF AGREEMENT VIOLATIONS; PROVIDING FOR COMPLIANCE WITH EXISTING LAWS; PROVIDING FOR WRITTEN ACCEPTANCE OF THE TERMS OF THIS AGREEMENT; AND PROVIDING AN EFFECTIVE DATE. A.3 REVIEW AND DISCUSS THE CITY'S FINANCIAL STATUS, FINANCIAL TRENDS AND ISSUES RELATED TO THE 1992-1993 MID-YEAR BUDGET AND FUTURE CITY BUDGETS. City Manager Richard Escalante and his staff reviewed and discussed with the members of the City Council all related issues of the financial status of the City for the 1992-1993 mid-year budget and future city budgets. AT 9:16 P.M., MAYOR BLAIR ANNOUNCED THAT THE ITEMS ON THE AGENDA FOR THE GENERAL SESSION AND STUDY SESSION HAVE BEEN CONCLUDED. AFTER A BRIEF RECESS THE COUNCIL WILL RECONVENE FOR ITEMS IN THE EXECUTIVE SESSION. THE MEETING WILL RECONVENE INTO GENERAL SESSION AFTER THE ITEMS HAVE BEEN DISCUSSED IN THE EXECUTIVE SESSION. ARTICLE 6252-17, SECTION 2 OF THE OPEN MEETING LAW PROVIDES THAT SUCH ITEMS AS PERSONNEL MATTERS MAY BE DISCUSSED IN CLOSED SESSION. E. la DISCUSS PERSONNEL MATTERS - ARTICLE 6252-17, SEC. 2(g) 1. DISCUSS APPOINTMENT TO THE DART BOARD. A discussion was held relating to the appointment to the DART Board. THE COUNCIL RECONVENED INTO GENERAL SESSION AT 9:30 P.M. E.2 CONSIDER NECESSARY ACTION ON PERSONNEL MATTERS DISCUSSED IN THE EXECUTIVE SESSION. Mayor Blair stated that the DART Board appointment will be considered at a later date. There was discussion of a possible special called meeting to consider the appointment. I7 Vol. 64, Page 131 F.1 ADJOURNMENT. A motion by Councilman Pyle, a second by Mayor Pro Tem Davis, all voting "aye", adjourned the City Council meeting of June 22, 1993 at 9:31 P.M. Mayor 40tycretary Vol. 64, Page 132