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HomeMy WebLinkAbout10-City Manager . ORIGINAL CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Prepared by: Catherine Pritchett, Management Analyst I Subject: Resolution of the Mayor and Common Council authorizing a License Agreement with Sprint Communications Company, L.P. permitting access to communications conduit beneath the city. From: Charles McNeely, City Manager Dept: City Manager's Office Date May 19,2009 Meeting Date: June 15,2009 Synopsis of Previous Council Action December, 1983 - The Mayor and Common Council authorize a Franchise Agreement with GTE Sprint Communications to construct, operate and maintain buried communications conduit in the City of San Bernardino. Recommended Motion: Adopt Resolution ~ &/v- Signature Contact person: Catherine Pritchett, Management Analyst I Phone: 384-5122 Supporting data attached: Staff Report, Resolution, Agreement Ward: 3rd FUNDING REQUIREMENTS: No cost to the City Amount: $625.00 in FY 08/09 Source: Sprint Communications Company, L.P. Council Notes: Finance: I?.so 2()09- /45 Agenda Item No. 10 1I~/I)~olf CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report Subiect: Resolution of the Mayor and Common Council authorizing a License Agreement with Sprint Communications Company, L.P. permitting access to communications conduit beneath the city. Backl!round: In 1983, the City of San Bernardino entered into a Franchise Agreement allowing Sprint Communications to construct, maintain and operate communications conduit within the City. This conduit runs beneath the City in the vicinity of Redlands Boulevard between the City of Redlands and the City of Colton. The communications conduit is used for the purpose of data transmission to customers outside of the City of San Bernardino and does not provide communication services to residents, businesses or any other entity within the City of San Bernardino. The 1983 Franchise Agreement was for a period of 25 years, and expired in December of 2008. In June of 2007, staff was contacted by Sprint requesting a new Agreement. Uncertain about the necessity of an extensive Franchise Agreement, staff referred this matter to the City Attorney's Office for review. The City Attorney's Office negotiated with Sprint to create a License Agreement allowing Sprint to encroach upon, construct, maintain, inspect, operate, protect, repair, replace and retain the portion of the conduit within the boundaries of the City. This seven (7) year License Agreement is subject to a one time fee of $625.00, as well as an annual license maintenance fee of $150.00. The first payment is due upon the execution of this License; annual payments are due in January of each succeeding year. This license does not allow for the distribution of communication services to City residents. In the event that Sprint wishes to provide services to residents, they will be required to enter into a comprehensive Franchise Agreement with the City. Financial Impact: $625.00 in revenue for FY 2008/2009 Revenue Account No. 001-000-4520 Six annual payments of$150.00 beginning in January 2010 Recommendation: Adopt Resolution. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. CC(Q)~)f RESOLUTION OF THE MAYOR AND COMMON COUNCIL AUTHORIZING A LICENSE AGREEMENT WITH SPRINT COMMUNICATIONS COMPANY, L.P. PERMITTING ACCESS TO COMMUNICATIONS CONDUIT BENEATH THE CITY. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The City Manager of the City of San Bernardino is hereby authorized and directed to execute on behalf of said City a License Agreement with Sprint Communications Company, L.P. permitting access to communications conduit beneath the city, a copy of which is attached hereto marked Exhibit A and incorporated herein by reference as fully as though set forth at length. SECTION 2. This License shall take effect immediately upon adoption of this Resolution. III III III III III III III III III III III 6-15'-00, zUlO I 1 2 3 4 5 RESOLUTION OF THE MAYOR AND COMMON COUNCIL AUTHORIZING A LICENSE AGREEMENT WITH SPRINT COMMUNICATIONS COMPANY, L.P. PERMITTING ACCESS TO COMMUNICATIONS CONDUIT BENEATH THE CITY. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a 6 meeting thereof, held on the _ day of , 2009, by the following vote, 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 to wit: Council Members: AYES NAYS ABSTAIN ABSENT ESTRADA BAXTER BRINKER SHORETT KELLEY JOHNSON MCCAMMACK Rachel G. Clark, City Clerk day of The foregoing resolution is hereby approved this 2009. Patrick J. Morris, Mayor City of San Bernardino Approved as to form: JAMES F. PENMAN, City Attorney Br!- 3'~ 2 EXHIBIT "A" LICENSE THIS LICENSE IS made and entered into this day of , 200_, by and between SPRINT COMMUNICATIONS COMPANY, L.P., hereinafter referred to as "Licensee," and the CITY OF SAN BERNARDINO, a municipal corporation hereafter referred to as "City." WITNESSETH: For and in consideration of the mutual promises and covenants herein contained, the parties hereby agree as follows: I. City gives permission, removable and terminable as hereinafter provided, to Licensee to encroach upon, construct, maintain, inspect, operate, protect, repair, replace and retain in place a buried communications conduit and appurtenances thereto in and around Redlands Boulevard and environs, as generally depicted in Attachment "1," which is incorporated herein by this reference, for the purpose of data transmission to customers, clients, and entities outside of the City of San Bernardino. No electric current will flow through this conduit, nor will there be any pressure inside the conduit. The conduit shall be used for transmitting communications through such buried communications conduit, in, under, along and across public streets, highways and alleys of the City of San Bernardino. However, no distribution of communication services to residents within the City is authorized by this Agreement, and the conduit authorized by this Agreement shall not be used for distribution of communication signals to individual persons, businesses or organizations within the City of San Bernardino. In the event that Licensee at any future time desires to use the conduit authorized by this Agreement for distribution of communication signals to residents, businesses or organizations within the 10[8 ,\-I ,i;; LPt '1 'i EXHIBIT "A" City of San Bernardino, Licensee shall obtain a Franchise Agreement before undertaking any such service, and subject to any requirements or conditions as may be imposed by the City. 2. Unless terminated earlier as provided herein, the term of this License shall be seven (7) years, to December 31, 2015. 3. Except in cases of emergency, prior to start of construction, maintenance, inspection, repair, or removal of the conduit, Licensee or its Contractor shall obtain a Public Works Construction Permit from the Public Works Division of the Development Services Department and comply with all conditions contained therein. In cases of emergency, a permit shall be obtained within two (2) business days of commencement of work. 4. Licensee, for its contractors and/or subcontractors hereby acknowledges and agrees that the nearby residential areas are sensitive noise receptors and operations shall be conducted with due regard for that sensitivity. The City's noise ordinance limits construction to between the hours of 7:00 AM and 10:00 PM. Unless approved by the Director of Development Services, no work shall be permitted on holidays or weekends except in cases of emergency. 5. The Licensee shall ensure that all Contractors and subcontractors, prior to beginning work on this project, first obtain a City Business Registration Certificate from the City Clerk of the City. 6. This License is given to Licensee as an accommodation to Licensee and is subject to an initial fee of $625.00 and the payment of an annual license maintenance fee of $150.00. The first payment is due upon execution of this License. Subsequent payments are due on the first day of January of each subsequent year. 20f8 EXHIBIT "A" 7. Licensee hereby acknowledges the title and paramount interest of City to the real property in which the conduit is located. Licensee agrees never to assail or resist said title or interest and to observe present or future set-back requirements relating thereto while this License is in force and effect. 8. City and Licensee each reserves the right to terminate this License at any time for any reason, or for no reason, by giving the other at least thirty (30) calendar days prior written notice of such termination, except that City may, at its election, terminate said permission forthwith at any time if Licensee shall fail to comply with any of the provisions of this License. Subject to the above, in the event of a breach by either party, the breaching party may be given written notice of such breach and an opportunity to cure such breach within 30 days of receiving notice. If such cure shall require longer than 30 days, the parties shall mutually agree to a schedule for curing such breach, said schedule not to be more than 90 calendar days. Waiver by the City of any breach of any term or provision herein shall not be deemed a waiver of any subsequent breach of the same or any other term or provision of this License. 9. Licensee agrees to install, use and maintain said encroachment as required by this License. Said encroachment shall be maintained at all times in a safe, neat, sightly manner and good physical condition. City shall be the sole judge, subject to reasonable standards, of the quality of maintenance. In addition to, and without abrogating any rights contained in paragraph 8, upon 30 calendar days prior written notice by City through its Director of Development Services, stating in general terms how and in what manner the maintenance is required, Licensee shall commence such required maintenance, and complete same within 30 calendar days unless otherwise agreed to by the City in writing. If Licensee fails to do so, then City shall have the right to perform this maintenance, the 30f8 EXHIBIT "A" cost of which shall be borne by Licensee. City may, at its election, exercise its right to require the performance of the maintenance and terminate this License. Licensee further agrees to install, use and maintain said encroachment in conformity with all applicable Federal, State, and local laws, rules and regulations. Licensee shall, at its sole responsibility and its own expense, obtain and keep in effect all licenses, bonds and permits necessary for the installation and existence of said encroachment. 10. Upon termination of this License, Licensee shall remove any encroachment from the real property unless otherwise agreed to in writing by City prior to the date of termination. Licensee shall have 60 calendar days from the date of termination of this License to remove all encroachments. If Licensee fails to exercise its duties under this paragraph, City shall have the right to remove said encroachment and to restore the premises at no cost or liability to the City. Licensee hereby covenants and agrees to reimburse City for all costs of removal and/or restoration. II. City shall in no way be liable for any loss or damage to Licensee or any third-party caused by Licensee's encroachment permitted under this License. City shall in no way be liable for any property belonging to or leased by Licensee, its officers, servants, agents or employees, that may be stolen, destroyed or in any way damaged during the installation, use or maintenance of said encroachment. Licensee shall save, indemnify, defend and hold harmless City, its elective and appointive boards, commissions, officers, agents, and employees from any costs, claims, damages, injuries, and liability, in whole or in part, whether brought by, or on behalf of, Licensee, any City employee or any third party or any other person or entity, resulting from, or arising out of, Licensee's installation, use, or maintenance of said encroachment, except to the extent arising out of the negligence or intentional act of City or its agents. 40f8 EXHIBIT "A" 12. Licensee shall exercise its privileges under this license at its own risk. Licensee shall save, indemnify, defend and hold harmless City, its elective and appointive boards, commissions, officers, agents and employees from any costs, claims, damages, injuries, and liability, in whole or in part, whether brought by, or on behalf of, Licensee, any City employee or third party, or any other person or entity, resulting from, or arising out of, the City's approval of this License, or the use or maintenance of said encroachment by Licensee, the occupation or use of the public areas of said encroachment by Licensee, both during and after the installation thereof, and including but not limited to any costs, claims, damages, injuries, and liability resulting from the conduct of Licensee or the employees, invitees, guests or agents of Licensee related to said encroachment except to the extent arising out of the negligence or intentional act of City or its agents. 13. The Licensee's attention is directed to Section 7-3, "Liability Insurance", of the Standard Specifications for Public Works Construction, 2006 Edition, providing that the Licensee or its Contractor, prior to beginning work on the property, shall furnish the City with policies or certificates of liability insurance. All of the Insurance Policies shall name the City of San Bernardino as an additional insured on the liability policies only. Licensee will provide a certificate of insurance to evidence coverage. During the entire term of this Agreement, Licensee shall maintain minimum limits of insurance no less than: A) General Liability: $1,000,000.00 per occurrence and $2,000,000 aggregate for bodily injury, personal injury and property damage. 50f8 EXHIBIT "A" B) Products/Completed Operations: $1,000,000.00 per occurrence and $2,000,000.00 aggregate. C) Automobile Liability: $1,000,000.00 per accident for bodily injury and property damage. D) Employer's Liability: $1,000,000.00 per accident for bodily injury or illness. E) Licensee shall comply with all applicable California Workers' Compensation requirements prior to commencement of any work related to this agreement. F) The above-referenced Insurance Policies shall remain in effect during the entire term of Licensee's encroachment and shall survive the termination of this License. The above-referenced Insurance Policies shall not be canceled until after Licensee has provided thirty (30) days written notice to the City. 14. This License is personal to Licensee. It is nonassignable, except with the written consent ofthe City, and any assignment of this License'without such consent will terminate the License privileges granted to Licensee. The City shall not unreasonably withhold consent. Notwithstanding the foregoing, no consent of Licensor is required and Licensee may notify Licensor up to 30 days after assignment if: (a) prior notice to Licensor would constitute the transmittal of material non-public information or inside information; or (b) Licensee assigns to any entity controlled, controlling or under common control with Licensee. Despite any assignment under (a) or (b), above, Licensee will not be released from its obligations under this License. 60f8 EXHIBIT "A" 15. Licensee agrees that should any action, whether real or asserted, at law or in equity, arise out of the terms of this License, or by Licensee's operations hereunder, venue for that action shall lie in San Bernardino County, California, or if in federal court, in Riverside County, California. 16. Licensee hereby certifies that it will not discriminate against any employee or applicant for employment because of race, color, religion, sex, marital status, national origin, disability, or any other category prohibited by law. Licensee's hiring practices and employee policies shall comply with all applicable Federal, State and local laws. Such action shall include, but not be limited to, the following: recruitment and recruitment advertising, employment, upgrading and promotion. 17. The prevailing party in any legal action to enforce or interpret any provision( s) of this License shall be entitled to recover from the losing party all reasonable attorney's fees, court costs and necessary disbursements in connection with that action. The costs, salary and expenses of the City Attorney and members of his office in connection with that action, shall be considered as attorney's fees for the purposes of this License. III III 70f8 EXHIBIT" A" LICENSE for encroachment to maintain conduit In and around Redlands Boulevard in the City of San Bernardino. All official notices relative to this License shall be in writing and addressed to the following representatives of Licensee and City: Licensee Asset Manager - Linear Facilities Enterprise Real Estate Sprint Communications Company, L.P 6391 Sprint Parkway MS: KSOPHT 0101-Z2040 Overland Park, KS 66251 Ph: (913) 439-5347 Fax: (913) 523-8337 With Copy to: Sprint Communications Company, L.P. 6391 Sprint Parkway MS: KSOPHTOI01-Z2020 Overland Park, KS 66251 A TIN: Real Estate Attorney Citv Ms. Valerie C. Ross, Director Development Services Department City of San Bernardino 300 North "D" Street San Bernardino, CA 92418 Ph: (909) 384-5357 Fax: (909) 384-5155 IN WITNESS, the parties have executed this License on date first written above. CITY OF SAN BERNARDINO Charles McNe~ly, City Manager Approved as to form: James F. 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