ORD NO 09-2020 CITY OF VAN BUREN,ARKANSAS
ORDINANCE NO.a 11 -2020
BE IT ENACTED BY THE CITY COUNCIL, FOR THE CITY OF VAN BUREN,
ARKANSAS, AN ORDINANCE TO BE ENTITLED:
AN ORDINANCE PROVIDING A ONE-TIME FEE UPON
ARKANSAS ELECTRIC COOPERATIVE CORPORATION
FOR CARRYING ON BUSINESS IN THE CITY OF VAN
BUREN,ARKANSAS,DECLARING AN EMERGENCY AND
FOR OTHER PURPOSES.
WHEREAS, the City desires to enact and impose upon Arkansas Electric Cooperative
Corporation a franchise fee; and
WHEREAS, Arkansas Code Annotated §14-200-101 provides that a municipality may impose a
reasonable franchise fee for the use and occupation of the city right-of-way in
addition to terms and conditions upon which the public utility may be permitted to
occupy the streets,highways, or other public places within the municipality; and
WHEREAS, in order to prevent the loss of revenue and to raise more revenue, a state of
emergency exists and the fees are needed to be made effective immediately for the
health, safety and welfare of the citizens of the City of Van Buren.
NOW,THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF VAN BUREN,ARKANSAS, THAT:
SECTION 1: Pursuant to A.C.A. §14-200-101,Arkansas Electric Cooperative Corporation,which
is conducting or carrying on business in the City of Van Buren, Arkansas under a
franchise shall pay a one-time fee of$2,500.00 for the use of the City of Van Buren
rights of ways as set forth in Exhibit "A" hereto. Arkansas Electric Cooperative
Corporation shall also pay $50.00 per street cut in accordance with the Code of
Ordinances of the City of Van Buren.
SECTION 2: Said privilege tax shall be paid in lieu of all other taxes, licenses, charges, fees or
impositions except general or special ad valorem taxes which might be lawfully
imposed by the City other than permit fees for street cuts.
SECTION 3: Arkansas Electric Cooperative Corporation shall have the right to occupy present
or future streets, highways, alleys or other public rights-of-way of the aforesaid
municipality for the purpose of carrying or installing and maintaining fiber optic
lines as set forth in Exhibit"A"hereto.
SECTION 4: Nothing herein contained shall be construed as giving to Arkansas Electric
Cooperative Corporation any exclusive privileges.
SECTION 5: The Mayor is authorized to enter into the attached Franchise Agreement with
Arkansas Electric Cooperative Corporation.
SECTION 6: The various provisions and parts of this Ordinance are hereby declared to be
severable, and, if any section or part of a section, or any provision or part of a
provision herein,is declared to be unconstitutional,inappropriate,or invalid by any
court of competent jurisdiction, such holding shall not invalidate or affect the
remainder of this Ordinance and to that extent the provisions hereto are declared to
be severable.
SECTION 7: Due to the need to raise more revenue and to protect against lost revenue, an
emergency is declared and this Ordinance being necessary for the preservation of
the public peace,health and safety shall be in full force and effect from and after its
passage, approval and publication.
IN WITNESS WHEREOF, the City of Van Buren, Arkansas, by its City Council, did
pass, approve, and adopt, by a vote of (p for and 0 against, the foregoing Ordinance at its
regular meeting held on the 23`d day of March 2020.
A5ti-
Joe Hurst
Mayor
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Phy Thomas Candice A. Settle
City Clerk/Treasurer City Attorney
Van Buren,•
Cl of Arkansas
Municipal ex
111 North 12th Street • Van Buren, Arkansas 72956
VAN BUREN CITY COUNCIL MEMORANDUM
TO: MAYOR JOE HURST AND CITY COUNCIL
FROM: WALLY BAILEY, PLANNING DIRECTOR
SUBJECT: ARKANSAS ELECTRIC COOPERATIVE CORPORATION FRANCHISE
AGREEMENT
DATE: MARCH 16, 2020
We recently received a request from Arkansas Electric Cooperative Corporation(AECC)to
install a fiber optic cable in the City of Van Buren street rights of way. The installation is a
limited installation of about 1.2 miles along the South 28th Street right of way beginning at the
intersection of Arkansas Highway 59 and ending at the right of way of Interstate 540.
AECC indicates the purpose of the purpose of the fiber optic line is to build a fiber network
connecting their office with seventeen (17) electrical cooperatives in Arkansas. This fiber
installation is not intended to provide services to individual customers.
A franchise agreement is necessary to allow this installation and to establish the terms of AECC
occupying a portion of the City street right of way.
The City Attorney and I have discussed terms of the agreement with AECC and they concur with
the agreement that is being presented to the City Council.
Please contact me if you have any questions.
FRANCHISE AGREEMENT
BETWEEN ARKANSAS ELECTRIC COOPERATIVE CORPORATION
AND
THE CITY OF VAN BUREN
WHEREAS, Arkansas Electric Cooperative Corporation(hereinafter"AECC")wishes to
install fiber optic lines for the purpose of connecting providers across the State for the provision
of internet, television and telephone services.
WHEREAS, the City of Van Buren and AECC wish to enter into a franchise agreement
governing the use of the City of Van Buren's right of ways by AECC in the City of Van Buren as
authorized by City of Van Buren Ordinance No.
NOW, THEREFORE,the Parties agree as follows:
1. AECC agrees to pay a one-time franchise fee of$2,500.00 for use of City of Van Buren
right of ways for the purpose of installing fiber optic lines to provide telephone and television
services as set forth in Exhibit"A"hereto, in addition to $50.00 per street cut pursuant to the Code
of Ordinances of the City of Van Buren.
2. AECC shall have the right to occupy present or future streets, highways, alleys or other
public ways within the City of Van Buren as set forth in the attached Exhibit"A" for the purpose
of installing fiber optic lines to connect to providers across the State for the purpose of its
operational needs as well as the provision of internet, television and telephone services. AECC
agrees that its use of the right of way will not be to such extent as to preclude other use of the right
of way. AECC agrees to notify the City of Van Buren if it intends to change its use of the right
of way or abandon the right of way.
3. Nothing herein contained shall be construed as giving to AECC any exclusive privileges.
4. AECC further agrees to comply with the Code of Ordinances of the City of Van Buren and
all city, state and federal laws including with respect to location of the fiber optic lines within the
right of way, including generally applicable permitting requirements that may be required under
the City of Van Buren's Code of Ordinances, as it now exists or may be amended from time to
time.
5. Upon abandonment of the right of way,AECC agrees,within a reasonable time,to remove
from the City of Van Buren's right of way any visible equipment used exclusively for AECC.
6. The City of Van Buren shall have the right to inspect all construction and installation work
performed by AECC within the public rights of way as necessary to ensure compliance with state
and local law.
7. AECC agrees to provide a bond as set forth in the Code of Ordinances of the City of Van
Buren.
8. AECC agrees to indemnify, defend and hold harmless the City, its officers, agents, and
employees from and against any lawsuits,claims,causes of action,liabilities,demands,judgments,
settlements, disabilities, losses, expenses including reasonable attorney's fees and costs, arising
out of, based upon or in any way connected to the construction, operation or maintenance of
AECC's fiber optic system.
9. AECC agrees to repair any damage caused to streets or sidewalks caused by an agent or
employee of AECC at AECC's expense.
10. AECC agrees to contact Arkansas One Call prior to digging in the rights of way.
11. If AECC leases fiber to private non-cooperative entities, the City may assess a franchise
fee in accordance with Ark. Code Ann. Section 14-200-101. AECC agrees it will notify the City
in the event AECC does lease to providers subject to franchise fees.
EXECUTED-this day of , 2020.
CITY OF VAN BUREN
BY:
MAYOR JOE HURST
ARKANSAS ELECTRIC COOPERATIVE
CORPORATION
BY:
ITS: