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ORDINANCE NO. 325
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AN ORDINANCE GRANTING TO ALASKA TELEPHONE CORPORATION A
NONEXCLUSIVE FRANCHISE PRIVILEGE TO CONSTRUCT, OPERATE,
AND MAINTAIN A PUBLIC TELEPHONE SYSTEM AND SERVICE IN THE
CITY OF SEWARD, ALASKA, FOR A TERM OF TWENTY (20) YEARS,
SUBJECT TO AND CONDITIONED UPON RATIFICATION BY THE ELECTORS
OF THE MUNICIPALITY; AUTHORIZING USE OF STREETS, ALLEYS AND
O'lHER PUBLIC PLACES i PRESCRIBING RtlLES AND REGULATIONS i
SETrING THE DATE OF THE FRANCHISE REFERENDUM ELECTION, AND
SETTING THE EFFECTIVE DATE OF SUCH FRANCHISE.
THE CITY OF SEWARD, ALASKA, ORDAINS: ~ ~
Section 1. Alaska TelePhone--tO'rporation, a corporation organized under
and operating pursuant to the laws of the State of Alaska, its successors and
assigns (hereinafter referred to as the "Company"), subject to and conditioned
upon ratification by the electors of the City of Seward, is hereby granted a non-
exclusive franchise for a period of twenty (20) years, commencing as of midnight,
14 October, 1963, and ending as of midnight, 14 October, 1983, to construct,
renew, extend, acquire, maintain and operate a public telephone system, to include
telephone service and such facilities as telephone lines, poles, wires, stubs,
anchors, cables, vaults, laterals, conduits, and other fixtures and equipment in,
upon, through, under, over, along and across the public streets, alleys, highways
and other public grounds and places of or in the City of Seward, a first class
municipal corporation created under and operating pursuant to the laws of the
State of Alaska (hereinafter referred to as the "City"), as may be necessary or
convenient for supplying to the citizens of the City and to the public at large
telephone service and communication by telephone or other electrical or electronic
signals, and for conducting a general telephone business in said City.
Section 2. For purposes of defining and carrying into effect the rights
and privileges granted to the Company by Section 1 of this Ordinance, the follow-
ing provisions, conditions and limitations shall prevail:
(a) The location of all facilities of the Company presently in
existence within the City is hereby approved. The location of any
additions or extensions or the relocation of any existing facilities
on the streets, alleys, or other public grounds of the City shall be
subject to the approval and authorization and accomplished under the
direction of the City Manager of the City or his designee.
(b) The facilities of the Company shall be so placed, located and
maintained, and the work of the Company in connection therewith shall
be so performed, as not to unreasonably interfere with ordinary travel
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and traffic on the streets and alleys of the City, or with ingress to
or egress from public or private property.
(c) After procuring a permit from the City to do so, the Company may
make such excavations in streets, alleys or other public places as
may be necessary for the installation, maintenance, removal or replace-
ment of its facilities, temporarily utilizing such portions of pavement
or sidewalk as required; however, the Company shall fill excavations
and reconstruct any roads, sidewalks, walkways or paving thus disturbed,
so as to leave the same in as good or better condition than before.
All work in or on the public rights of way or other public places shall
be properly barricaded during daylight hours, and both barricaded and
adequately lighted with approved safety devices during the hours of
darkness. The Company shall be fully responsible to any persons who
shall be injured through the negligence of or frOlll or by reason or on
account or as a result of the activities of the Company under the
telephone franchise privilege, and the Company sball execute a docUlllent
of indemnity holding the City harmless therefrom. In addition, the
Company shall furnish the City with certificates of insurance (with the
stipulation that the City, as certificate holder, will be given 15 days'
notice of intent to cancel) evidencing:
(i) Not less than $100,000 of bodily injury liability coverage
per individual and $300,000 per accident, nor less than $25,000
of property damage liability coverage. The applicable certifi-
cate of insurance shall clearly indicate that the property damage
liability coverage includes hazards from explosion, collapse,
damage to underground wires, conduits, pipes, fittings, mains,
sewers or other similar property. Such certificates shall fur-
ther clearly indicate that the docUlllent of indemnity required
pursuant to the provisions of this section has been incorporated
into and made a part of the applicable insurance policy.
(11) Workmen's Compensation insurance in accordance with the
laws of Alaska.
Section 3. Anything herein to the contrary noni thstanding, the rights
and privileges granted to the Company shall always be subject to the provisions of
Sec. 29.10.141 through Sec. 29.10.153, Alaska Statutes, as from time to time
amended; and such rights and privileges granted to the Company shall also always
be subject to the present and future regulation of the Common Council of the City.
This franchise shall not be assi~able by the Company without written authorization
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of the City Manager pursuant to prior approval of the Common Council of the City.
Section 4. The Company shall pay to the City the sum of $2.50 annually
for the use of each City utility pole utilized in any manner by the Company or
its equipment. Said payment shall be made in advance on an annual basis during
the first half of July. A physical count of said City poles utilized shall be
made jointly by representatives of both the City and the Company during the month
of May of each year. An additional pole use payment shall be required on a pro
rata basis for any additional City utility pOles utilized by the Company or its
equipment, and said pro rata balance of annual payment Shall be made by the
Company to the City during the month said equipment is attached or said pole is
otherwise utilized. Installation of any such equipment shall be accomplished in
accordance with City specifications, using REA standards.
Section 5. This ordinance granting a public service telephone franchise
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to Company shall be submitted for ratification to the qualified voters of the
City at the general election of 1 October 1963, and at least thirty (30) days'
notice of said franchise referendum election shall be given in the same manner as
is provided for notice of general city elections, and the notice shall specify
that the purpose of the franchise referendum election is to determine whether at
least fifty-five per cent (55%) of the votes cast by the electors of the munici-
pality are in favor of the franchise. If less than fifty-five per cent (55%) of
the votes cast are in favor of the franchise, it shall be null and void, and this
ordinance shall be of no further force and effect. If at least fifty-five per
cent (55%) of the votes cast are in favor of the franchise, the provisions of this
ordinance shall pertain, and shall be effective as of midnight, 14 October 1963,
as aforesaid. The results of the election shall be canvassed publicly by the
Common Council of the City and spread upon the records of the minutes, and the
results declared and certified in the same manner as in a general election.
Section 6. The City reserves the right and option to revoke or repeal
this franchise should the Company commit a material breach of any of the provisions
of this ordinance, or otherwise fail to operate pursuant to the laws of the State
of Alaska, or contrary to the ordinances, rules or regulations of the City, or
otherwise fail to provide the public telephone service herein contemplated. Not
less than thirty (30) days' prior written notice before revocation or repeal of
the franchise shall be furnished by the City to the Company, advising that the
City contemplates revocation or repeal of said franchise, in order that the
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Company may have an opportunity to correct its deficiencies.
Section 7. There is hereby reserved to the Common Council of the City
the right to regulate, fix, establish and change, as it considers proper, the
rates and charges imposed for telephone services rendered to the City or its in-
habitants, and may regulate and provide what is a reasonable deposit or security
for services to be given. A I
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All rates, charges and regulations shall be reasonable, and shall permit a fair
and reasonable return on net capital investment, i.e., initial investment, regard-
less of subsequent changes in ownership, plus capital additions and minus accrued
depreciation. Said fair and reasonable return on invested capital shall be condi-
tioned upon the operation of Company being efficient and economical.
Section 8. This enactment shall be binding upon and shall inure to the
benefit of the Alaska Telephone Corporation, its successors and assigns.
Section 9. All ordinances or parts of ordinances in conflict herewith
are hereby superseded and repealed.
Section 10. A determination that any part of this Ordinance is invalid
sball not affect the validity of any remaining portions or provisions hereof.
Section 11. The Company shall, upon demand, pay the costs of publishing
this Ordinance.
* . * .
Publication of this Ordinance shall be made by posting a copy hereof on
the City Hall Bulletin Board from the date of its passage and approval until 10
October 1963, ten (10) days following the franchise referendum election at which
this Ordinance sball be submitted to the electors of the municipality for approval
of the franchise.
First reading: 5 August 1963
Second reading: 19 August 1963
PASSED AND APPOOVED by the Common Council of the City of Seward, Alaska,
this 29th day of August, 1963.
a Q~~~
~perry R. Stockton
Mayor
Attest:
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h~tl1~e B. V:a1l1ls ~"'~1~
City C1erk-TI IL r ~
content:
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