ORD NO 10-2020 CITY OF VAN BUREN, ARKANSAS
ORDINANCE NO. /0 -2020
BE IT ENACTED BY THE CITY COUNCIL, FOR THE CITY OF VAN BUREN,
ARKANSAS, AN ORDINANCE TO BE ENTITLED:
AN ORDINANCE IMPOSING AN ANNUAL FRANCHISE
FEE UPON WAVE RURAL CONNECT, LLC FOR USE OF
THE RIGHTS OF WAYS OF THE CITY OF VAN BUREN,
ARKANSAS, DECLARING AN EMERGENCY AND FOR
OTHER PURPOSES.
WHEREAS, the City desires to enact and impose upon Wave Rural Connect a franchise fee for
use of the City of Van Buren's right of way and for conducting business within
the City of Van Buren which shall be in lieu of all other licenses, charges, fees or
special taxes other than the usual general or special ad valorem taxes and street
cut permit fees; 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 to provide services in addition to providing 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, Wave Rural Connect which is conducting or
carrying on business in the City of Van Buren, Arkansas under a franchise shall
pay as an annual franchise fee 4.25% of the gross revenues received by said
company in the preceding year for all telephone and television services provided in
the City of Van Buren. Collection of the tax by Wave Rural Connect shall begin
May 1, 2020. The said tax shall be payable on or before the 30th day of April,
2021, as computed for 2020, and annually thereafter on or before the 30th day of
April in each year. Payment shall be accompanied by a report in such form and
containing sufficient detail to determine Wave Rural Connects compliance with
this section with the payment. In the event a payment is not received on or before
the date due, Wave Rural Connect shall pay in addition to the payment, interest
from the due date at 10% per annum. The City of Van Buren shall have the right
to audit any such payment for a period of four (4) years, and no acceptance of any
payment shall be deemed final until the period for audit shall have expired.
SECTION 2: Said privilege tax shall be paid in lieu of all other taxes, licenses, charges, fees or
impositions for the use of the right of way for the installation and maintenance of
fiber optic lines and for conducting business within the City of Van Buren except
general or special ad valorem taxes and street cut permits,
SECTION 3: Wave Rural Connect shall have the right to occupy present or future streets,
highways, alleys or other public rights-of-way in the City of Van Buren for the
purpose of installing and maintaining fiber optic lines.
SECTION 4: Nothing herein contained shall be construed as giving to Wave Rural Connect any
exclusive privileges.
SECTION 5: The Mayor is authorized to enter into the attached Franchise Agreement with
Wave Rural Connect to implement the provisions hereof.
SECTION&: 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 from the
current business operations of Wave Rural Connect in the City, 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 jp for and 0 against, the foregoing Ordinance at its
regular meeting held on the 23rd day of March 2020.
.T( 1"52(-- Cf‘Cr
Mayor
ATTESTED: " ' !VED AS TO FORM:
d..6:4:2.46-Mcw
Ph Thomas Candice A. Settle
City Clerk/Treasurer City Attorney
FRANCHISE AGREEMENT
BETWEEN WAVE RURAL CONNECT AND
THE CITY OF VAN BUREN
WHEREAS, Wave Rural Connect, LLC wishes to install fiber optic lines for the purpose
of the provision of internet,television and telephone services.
WHEREAS, Wave Rural Connect will be leasing from its parent company, Arkansas
Valley Electric Cooperative Corp., the fiber in connection with this project which will be within
Arkansas Valley's presently existing electric service areas.
WHEREAS,the City of Van Buren and Wave Rural Connect wish to enter into a franchise
agreement governing the use of the City of Van Buren's right of ways by Wave Rural Connect for
the provision of television and telephone services in the City of Van Buren as authorized by City
of Van Buren Ordinance No.
NOW, THEREFORE, the Parties agree as follows:
1. Wave Rural Connect agrees to collect beginning May 1, 2020 an annual privilege tax of
4.25% of the gross revenues received by Wave Rural Connect in the preceding year for all
telephone and television services provided within the City of Van Buren and remit same to the
City of Van Buren on or before the 30th day of April, 2021, as computed for its collections in the
previous calendar year of 2020, and annually thereafter on or before the 30th day of April in each
year.
2. Wave Rural Connect agrees to provide with the payment a report in such form and
containing sufficient detail to determine Wave Rural Connect's compliance with regard to
payment. Wave Rural Connect agrees to pay interest at a rate of 10% from the due date for any
payment made late.
3. The City of Van Buren will have the right to audit any payment for a period of four (4)
years, and no acceptance of payment shall be deemed final until the period for the audit shall have
expired.
4. The privilege tax shall be paid in lieu of all other taxes, licenses, charges, fees or
impositions except general or special ad valorem taxes and street cutting permit fees which might
be lawfully imposed by the City of Van Buren.
5. Wave Rural Connect shall have the right to occupy present or future streets, highways,
alleys or other public ways within the City of Van Buren for the purpose of installing and
maintaining fiber optic lines for the provision of internet,television and telephone services. Wave
Rural Connect 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. Wave Rural Connect 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.
6. Nothing herein contained shall be construed as giving to Wave Rural Connect any
exclusive privileges.
7. Wave Rural Connect 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 ordinances, as it now exists or may be amended from time
to time.
8. Upon abandonment of the right of way, Wave Rural Connect agrees, within a reasonable
time,to remove from the City of Van Buren's right of way any visible equipment used exclusively
for Wave Rural Connect.
9. The City of Van Buren shall have the right to inspect all construction and installation work
performed by Wave Rural Connect within the public rights of way as necessary to ensure
compliance with state and local law.
10. Wave Rural Connect agrees to contact Arkansas One Call prior to any digging in City right
of ways.
11. Wave Rural Connect agrees to repair any damage to streets or sidewalks caused by
employees or agents of Wave Rural Connect at Wave Rural Connect's expense.
12. Wave Rural Connect agrees fully to comply with Parts 5-10 of the Agreement but may
perform those obligations acting in concert with Arkansas Valley Electric Cooperative Corp. with
the understanding these provisions are presently in place in a separate agreement between the City
of Van Buren and Arkansas Valley.
13. Wave Rural Connect agrees to provide to the City a certificate of insurance or self-
insurance in the amount of $3,000,000.00 upon execution of this Agreement and thereafter
annually along with the franchise payment.
11. Wave Rural Connect 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 Wave Rural Connect's fiber optic system.
EXECUTED this day of , 2020.
CITY OF VAN BUREN
BY:
MAYOR JOE HURST
WAVE RURAL CONNECT