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R95-25 04-10-95 RESOLUTION NO. R95 -25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS ENDORSING THE PASSAGE OF TELECOMMUNICATIONS LEGISLATION IN TEXAS THAT ESTABLISHED PRICE REGULATION, CONTINUES PUBLIC UTILITY COMMISSION OVERSIGHT, AND PROVIDES INCENTIVE FOR $1.5 BILLION INFRASTRUCTURE PROPOSAL. WHEREAS, Southwestern Bell Telephone Company and the Texas Telephone Association "SWBT /TTA have proposed a $1.5 billion telecommunications infrastructure plan which would provide for extensive jobs creation and economic development opportunities, especially in rural Texas; and WHEREAS, the $1.5 billion SWBT /TTA infrastructure proposal would provide fiber optic telecommunication facilities to schools, hospitals and libraries in Texas, thus paving the way for dramatic improvements in education and healthcare, particularly in rural areas, while at the same time capping basic local telephone rates for an additional four years; and WHEREAS, the infrastructure commitment would also include an educational grants pool totalling $80 million from which all Texas educational institutions could apply for funds necessary to establish distance learning; and WHEREAS, the infrastructure proposal is only possible if legislation is passed which recognizes the need for a change in telecommunications industry regulation from rate -of- return regulation to price -of- service regulation; and WHEREAS, $1.1 billion of the infrastructure proposal would come from Southwestern Bell Telephone, a Texas -based company with an existing net investment in the state totalling over $6.9 billion; and WHEREAS, Southwestern Bell Telephone with its 26,650 employees continues to be an active participant in all the Texas communities it serves, providing some $10.5 million in charitable contributions annually; and WHEREAS, Southwestern Bell Telephone has established a proven track record of fulfilling its obligations to rural Texas by its completion ahead of schedule of all commitments made in PUC Ow RESOLUTION NO. R95 -25 Docket 8585, or Texas First; Specifically, the elimination of 2 party /4 party lines, mileage fees and cost of modern digital switches in 200 rural cities costing in excess of $1 billion. BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That the City Council endorses passage of tele- communications legislation in Texas that established price rather than rate -of- return regulation, continues Public Utility Commission oversight of the price regulation of basic local telephone service as well as service quality, and provides Texas telephone companies the incentive to go forward with their $1.5 billion infrastructure proposal. PASSED, APPROVED and ADOPTED this the /o day of (2 A. D., 1995. Ai i DAVID MITH MAYOR PRO TEM ATTEST: 0/ 1 r TOMMIE JEAN VI INTERIM CITY SECRETARY APPROVED A TO FORM 4/111 il J j J t °A M• ES MCCULLOU .H 4 CITY TTO' EY I