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HomeMy WebLinkAbout2000-021 Utility Franchise Agmt - US West City of Ashland Telecommunications Utility Franchise Agreement Franchise agreement authorized pursuant to Ashland Municipal Code Title 16 between the City of Ashland (City) and U S WEST Communications, Incorporated (U S WEST or Grantee) and dated this/(,, day of '~tj{zx~.~, 2000 but effective October 1, 1998. 1 Grant of Franchise. City grants to U S WEST, its successors and assigns, the non-exclusive right and privilege to provide telecommunications service within the City of Ashland and to place, erect, lay, maintain and operate in, upon, over and under the streets, alleys, avenues, thoroughfares, and public highways, within the City, poles, wires and other appliances and conductors for telecommunications service. Such wires and other appliances and conductors may be strung upon poles or other fixtures above ground, or where required to by the City, must be laid underground, and such other apparatus may be used as may be necessary or proper to operate and maintain the same. 2 Excavations. Grantee may make all necessary excavations in any of the streets, alleys, avenues, thoroughfares and public highways in the City for the purpose of placing, erecting, laying and maintaining poles or other supports or conduits for such wires and appliances and auxiliary apparatus or repairing, maintaining, renewing or replacing the same. The work must be done in compliance with the necessary rules, regulations, ordinances or orders, which may during the continuance of this franchise be adopted from time to time by the City. 3 Restoration. Whenever Grantee disturbs any of the streets for the purposes stated in this agreement, it must restore the same to good order and condition as soon as practicable without unnecessary delay, and failing to do so, the City has the right to fix a reasonable time in writing within which such repairs and restoration of streets must be completed, and upon failure of such repairs being made by the Grantee, the City may cause the repairs to be made at the expense of the Grantee. Restoration of the streets shall a~so be governed by Sections 16. t 2.170 and 16.12.180 of the Ashland Municipal Code. 4 I~elocation. Nothing in this agreement will be construed in any way to prevent the proper authorities of the City from sewering, grading, planking, rocking, paving, repairing, altering, or improving any of the streets, alleys, avenues, thoroughfares and public highways within the City of Ashland in or upon which the poles, wires or conductors of the Grantee are placed, but all such work or improvements will be done if possible so as not to obstruct or prevent the free use of these poles, wires, conductors, conduits, pipes, or other apparatus. Grantee must, at no cost to City, temporarily remove, relocate, change or alter the position of any of its facilities when reasonably necessary and directed to do so by City in compliance with Ashland Municipal Code Title 16. Page 1-Telephone Utility Franchise 1999 (DA0036Z2.411) 4.1 Grantee shall not be required to temporarily remove, relocate, change or alter the position of any of its facilities when requested by the City if the City requests such removal, relocation, change or alteration for the City's provision of telecommunications services. 5 Moving Aerials. Whenever it becomes necessary to temporarily rearrange, remove, lower or raise the aerial cables or wires or other apparatus of the Grantee to permit the passage of any building, machinery or other object moved over the roads, streets, alleys, avenues, thoroughfares and public highways within the City, the Grantee will perform such a rearrangement within a reasonable period after written notice from the owner or contractor-mover desiring to move the building, machinery or other objects. The notice must bear the approval of the City, must detail the route of movement of the building, machinery, or other object, must provide that the costs incurred by the Grantee in making such a rearrangement of its aerial facilities will be borne by the contractor-mover and must further provide that the contractor-mover will indemnify and save the Grantee harmless of and from any and all damages of claims whatsoever kind or nature caused directly or indirectly from such temporary rearrangement of the facilities of the Grantee, and if required by the Grantee, must be accompanied by a cash deposit or a good and sufficient bond to pay any and all such costs as estimated by the Grantee. 6 Payment by Grantee. Grantee will pay to the City seven percent per annum of its gross revenues derived from exchange access services as defined in ORS 401.710 within the corporate limits of the City of Ashland less net uncollectibles. Payment of this franchise fee is to be made quarterly or before April 30, July 31, October 31 and January 31 for the calendar quarters immediately preceding. Payment of this franchise fee shall be accepted by the City as payment of any permit or inspection fees or similar charges for street openings, installations, construction or maintenance imposed by the City upon the Grantee during the term of this franchise. 61 No acceptance of any payment is be construed as an accord that the amount paid is, in fact, the correct amount, nor is any acceptance of payments be construed as a release of any claim the City may have for further or additional sums payable. All amounts paid under section 6 are subject to confirmation and recomputation by the City, provided that such audit and computation is completed within two years of the date any audited and recomputed payment is due. If no such audit is conducted within the two year period, then any claim that the City might have had for additional compensation will be forever waived and relinquished. The Grantee agrees to reimburse the City for: A. The reasonable costs of such confirmation if the City's recomputation discloses that the Grantee has paid 95 % or less of the Page 2-Telephone UtiJity Franchise 1999 (PAO03672.411) franchise fees owing for the period at issue upon receipt of an invoice from the City showing such costs were actually incurred and directly related to the audit; or B. One-half of the reasonable costs of such confirmation if the City's recomputation discloses that the Grantee had paid more than 95% but less than 98% of the franchise fees owing for the period at issue. C. The City's costs which may be reimbursed under this Section 6.1 shall not exceed $5,000.00. D. If the City determines that Grantee made any underpayment, and that the underpayment exceeded 5 % of the amount due, Grantee will pay interest compounded at the rate of one percent over the existing prime rate as set by the bank with which the City contracts for its banking services, compounded monthly. Interest will be due on the entire underpayment from the date on which payment was due until the date on which full payment is received. E. If the Grantee disputes the City's determination of underpayment, the Grantee will place the disputed amount in an escrow account until final resolution. F. All Grantee's nonconfidential books, maps, and records directly concerning its gross revenues under this franchise and its calculation of franchise fee payments to the City must be open for inspection by the proper officers or agents of the City, upon no less than 48 hours prior written notice, during normal business hours solely to determine the amount of compensation due the City under this franchise, and must be kept so as to accurately show the same. The information disclosed by Grantee pursuant to this provision shall not be used by the City for any purpose other than determining the amount of compensation due the City and shall not be copied, reproduced, or otherwise duplicated by the City without the express written consent of Grantee. 6.2 Notwithstanding Section 16.24.070 of the Ashland Municipal Code, Grantee shall not be required to pay the City any fee other than the franchise fee described in this Section 6. 7 Term. The rights, privileges and franchise granted in this agreement will continue and be in force for the period of five years from and after October 1, 1998. The City may terminate this agreement subject to Section 16.20.170 of the Ashland Municipal Code. Grantee may terminate this agreement upon 180 days' notice in writing. This agreement shall be subject to any and all State or Federal legislative enactments. Page 3-Telephone Utility Franchise 1999 (PA003672.411) 8 Indemnification. Grantee will defend, indemnify and hold the City and its officers, employees, agents and representatives harmless from and against any and all damages, losses and expenses, including reasonable attorney's fees and costs of suit or defense, arising out of, resulting from or alleged to arise out of or result from the negligent, careless or wrongful acts, omissions, failures to act or misconduct of the Grantee or its affiliates, officers, employees, agents, contractors or subcontractors in the construction, operation, maintenance, repair or removal of its telecommunications facilities, and in providing or offering telecommunications services over the facilities or network, whether such acts or omissions are authorized, allowed or prohibited by this franchise agreement. Nothing in this provision shall require Grantee to indemnify the City against the negligent or intentional acts or omissions of the City, its Departments, employees, agents, or representatives. 9 Hazardous Substances. Grantee must comply with all applicable state and federal laws, statutes, regulations and orders concerning hazardous substances relating to grantee's telecommunications facilities in the city streets. For purposes of this section, "hazardous substances" has meaning given in ORS 465.200(15). 9.1 Grantee must maintain and inspect its facilities located in the city streets. Upon reasonable notice to Grantee and in the presence of an authorized representative of Grantee, the City may inspect Grantee's facilities in the streets to determine if any release of hazardous substances has occurred, or may occur, from or related to Grantee's facilities. 9.2 Whenever Grantee removes, relocates, changes or alters its facilities, Grantee must also remove all residue of hazardous substances in compliance with applicable environmental clean-up standards. 9.3 Grantee agrees to forever defend, indemnify and hold the City and its officers, employees, agents and representatives harmless against any claims, costs, and expenses, of any kind, whether direct or indirect, incurred by the City arising out of the release or threat of release of hazardous substances caused by Grantee's ownership or operation of a telecommunications utility in the streets. Nothing in this provision shall require Grantee to indemnify the City against the negligent or intentional acts or omissions of the City, its Departments, employees, agents, or representatives. 10 Assignment. Assignment of this agreement shall be governed by Sections 16.20, 150 and 16.20.160 of the Ashland Municipal Code. 11 Construction Standards. Construction standards shall be governed by Chapter Page 4-Telephone Utility Franchise 1999 (PA003672.411) 12 13 14 16.12 of the Ashland Municipal Code, subject to the following: 11.1 Grantee shall not be required to pay a construction permit fee as described in Section 16.12.070 of the Ashland Municipal Code. 11.2 Grantee shall not be required to obtain a construction and completion bond as described in Section 16.12.190 of the Ashland Municipal Code. 11.3 As part of the construction permit application, Grantee shall submit drawings, plans, specifications, or maps showing the general location of facilities to be installed in the public right of way under the construction permit. The drawings, plans, specifications, or maps may be hand-drawn or computer-generated at Grantee's discretion. Insurance. Grantee shall not be required to obtain insurance as described in Section 16.24.100 of the Ashland Municipal Code. Performance Surety. Grantee shall not be required to provide and maintain a performance surety as described in Section 16.24.120 of the Ashland Municipal Code. Reservation of Rights. Grantee and the City disagree on the legality and enforceability of several provisions of Title 16 of the Ashland Municipal Code. Nothing in this Franchise Agreement, nor Grantee's acceptance thereof or performance pursuant to its terms, shall be deemed a waiver by Grantee of the rights of Grantee under applicable law. Grantee reserves and in no way waives any right to challenge enforcement of these requirements and the City acknowledges such reservation and non-waiver by Grantee. City Page 5-Telephone Utility Franchise 1999 (PA003672.411) CITY OF ASHLAND Office of the City Attorney 20 East Main, Ashland, OR 97520 (541) 488-5350 - ~ (541) 488-5311 - Fax February 23, 2000 Paul Nolte, CIty Attorney Sharlene P. Stephens, Legal Assistant Greg Peden Manager- Public Policy U S West 421 Southwest Oak Street, Suite 8, South 8 Portland, OR 97204 RE: Telecommunications Utility Franchise Agreement The City of Ashland Telecommunications Utility Franchise Agreement with U S West, Inc., was approved by the Ashland City Council on February 15, 2000, and signed by Mayor Shaw on February 16, 2000. Attached is one of the two signed ori~inals for your records. CITY ATTORNEY'S OFFICE Sharlene P. Stephens Legal Assistant Attachment F:\USER\PAUL%Telecommunications\Peden Itr 0200.wpd E-Mail Addresses: paul@ashland.or.us ~'~ shaderie@ashland.or. us