DATE: January 26, 2005

TO:  Mayor Tom Potter

FROM:

 David C. Olson, Director, Office of Cable Communications and Franchise Management

 David Soloos, Assistant Program Director, Utility Franchise Management

RE: *Consent to transfer of revocable permit for public telephones from Qwest Corporation, formerly U.S. West Communications, to FSH Communications, LLC (Ordinance; Transfer Ordinance No. 174341)

1. Intended Thursday Filing Date: February 10, 2005

2. Requested Council Agenda Date: February 16, 2005

3. Contact Name & Number: Susan Sloan x3-0039

4. Place On: x Consent ____Regular

5. Budget Impact Statement Attached: ­­­­­_­­­_X_Y___N____N/A

6. (3) Original Copies of Contracts Approved as to Form by City Attorney

Attached ___Y_____N__X_N/A

____________________________________________________________________________

7. Background/Analysis

 Ordinance No. 174341,a revocable permit issued on April 12, 2000, allowed US West Communications, Inc. to install, maintain and operate public telephones on City Streets. US West changed its name to Qwest Corporation ("Qwest") and continued to operate public pay phones in the City. On August 6, 2004, Qwest notified the City that the public pay phone service was being sold to FSH Communications, LLC on August 23 2004. FSH agreed to honor the provisions and requirement of the Qwest revocable permit for public telephones until it expires in 2006.

 This ordinance transfers the revocable permit to FSH Communications, LLC and terminates Qwest's responsibility for the operation of public pay phones in the City.

8. Financial Impact

 The City will continue to receive approximately $36,000 per year from this transfer.

9.Recommendation/Action Requested

 Place the ordinance on the Council Consent Agenda for February 16, 2005.