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HomeMy WebLinkAboutRES 88-098 R E S O L U T I O N WHEREAS, on April 7 , 1987, the City Manager was authorized to execute Resolution 87-74 executing a license agreement with AT & T for the use of city right-of-way for the installation of a fiber optic communication system; and, WHEREAS, the initial fee for the agreement was Five Hundred Dollars ($500.00 ) and covered installation of 47,186 linear feet of fiber optic cable at Sixty Cents ($.60 ) per linear foot per year through 1992 with a new rate being negotiated on January 31 , 1991 to become effective January 1 , 1993 and negotiate on a new rate again in 2001 and every ten (10 ) years thereafter; and, WHEREAS, in addition to these charges, AT & T paid the city Forty Thousand Dollars ( $40,000. 00 ) for inspection, engineering and other costs during the period of initial construction which was completed as Route One; and, WHEREAS, AT & T has applied to the city for an agreement modifying and amending the original agreement to install an additional 4,746 linear feet of cable as Route Two, a copy of which is attached hereto as Exhibit "A" for all purposes; and, WHEREAS, the initial fee for the amendment shall be Five Hundred Dollars ( $500.00 ) plus Sixty Cents ($.60 ) per linear foot per year through 1992, the fee being prorated for 1988 ; and, WHEREAS, the inspection, engineering and other costs during construction of Route Two shall be Ten Thousand Dollars ( $10, 000.00 ) and AT & T shall negotiate on new rates for the amendment covering Route Two on the same dates outlined in the original agreement for Route Two; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be, and he is hereby, authorized to execute an amendment modifying the original license agreement between the City of Beaumont and AT & T to cover the installation of an additional 4, 746 linear feet of fiber optic cable for Route Two. PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of , 1988. f! � Mayor - 2 - 041488 ADDENDUM TO PUBLIC RIGHT-OF-WAY USE AGREEMENT THIS ADDENDUM amends and modifies the Public Right-of-Way Use Agreement (the "Agreement" ) dated April 7 1987 , by and between AT&T Communications , Inc. , as agent for AT&T Communications - Interstate Division, a division of Ameri- can Telephone and Telegraph Company, ( "AT&T" ) and the City of Beaumont ( "the City") as follows : 1 . The Agreement shall apply to the streets and other public rights-of-way first utilized by AT&T along the route described in Paragraph 2 of this Addendum (the "First Route" ) and also to the second route utilized by AT&T for placement of its system described in Paragraph 3 of this Addendum (the "Second Route") . 2 . For purposes of the Agreement and this Addendum, the First Route shall be as shown on the plans and specifications submitted by AT&T to the City under AT&T Authority No. EW 75480 , Specification No. SA 40527 , Issue Date January 30 , 1987 , as the same may be modified from time to time as reflected in "as- builts" submitted to the City by AT&T. 3 . For purposes of the Agreement and this Addendum, the Second Route shall be as shown on the plans and specifications submitted by AT&T to the City under AT&T Authority No. EW 75740 , Specification No. SA 40519 , Issue Date March 21 , 1988 , as the same may be modified from time to time as reflected in "as- builts" submitted to the City by AT&T. Exhibit "A„ 4 . AT&T shall make payment to the City of Beaumont as follows : (a) With respect to the First Route, AT&T shall make payment to the City in the amount of $500 . 00 , receipt of which is hereby acknowledged by the City, and thereafter the amount of $28 , 311 . 60 per year, which sum shall be payable January 1 , 1989 and each year thereafter. (b) AT&T shall also pay inspection, engineering and other costs during the period of initial construc- tion with respect to the First Route in the amount of $40 ,000 .00 , receipt of which is hereby acknowl- edged by the City. (c) With regard to the Second Route, AT&T shall make payment in the amount of $500 . 00 . AT&T shall also reimburse the City for inspection, engineering and other costs during the period of initial construction in the amount of $10 ,000 .00 and a proration of an annual fee in the amount of $2 , 005 .02 for 1988 . The full annual fee in the amount of $2 , 847 . 60 for the Second Route shall be payable on January 1 , 1989 and each year thereaf- ter. (d) As to both the First Route and Second Route, the parties shall confer and negotiate on new annual rates on January 31 , 1991 to become effec- tive January 1 , 1993 ; and shall confer and negoti- ate on such rates in the year 2001 and every ten (10) years thereafter. 5 . Paragraph (t) shall be deleted in its entirety and the following inserted in lieu thereof: This Agreement shall inure to the benefit of AT&T, its parent, subsidiary and affiliated companies. AT&T shall be permitted to assign its interest in this Agreement to any parent, subsidiary or affili- ated company, but assignment to any unrelated company must first be approved by the City Manager of the City of Beaumont, which approval will not be unreasonably withheld, delayed or conditioned. 2 6 . The last full paragraph on page 6 of the Agreement shall be amended by adding the following after the second sentence thereof: "Notwithstanding any provision in the Agreement to the contrary, if the City shall give AT&T written notice of any violation of the Agreement which cannot be reasonably corrected within sixty (60) days, the Agreement shall not be terminated if AT&T promptly commences to cure such violation and diligently pursues, as determined by the City Engineer, such correction to completion. " 7 . It is further understood and agreed that, except as amended and modified herein, the PUBLIC RIGHT-OF-WAY USE AGREE- MENT first referred to above shall remain and be in full force and effect as to its present terms and conditions. THE CITY OF BEAUMONT By: Albert E. Haines City Manager ATTEST: City Clerk By: AT&T Communications , Inc. , as agent for American Telephone and Telegraph Company Represented By: Vice President Title ATTEST: Assistant Secretary 3