HomeMy WebLinkAbout2003-033 Franchise transfer to Open Access Communications, Inc. ORDINANCE NO 2003- 33
AN ORDINANCE relating to the telecommunications system franchise
granted to Central Telecommunications East, Inc. under
City of Yakima Telecommunications System Franchise
Ordinance No 2002 -24, and approving the transfer of the
telecommunications system franchise from Central
Telecommunications East, Inc. to Open Access
Communications, Inc.
WHEREAS, Central Telecommunications East, Inc. ( "CTE ") is duly
authorized to operate and maintain a telecommunications system in the City of
Yakima, Washington, pursuant to the terms and conditions of a
telecommunications system franchise (the "franchise ") as granted by the City of
Yakima (the "City ") under City of Yakima Telecommunications System Franchise
Ordinance No 2002 -24, and
WHEREAS, CTE has entered into an agreement to complete a transaction
(the "transaction ") with Open Access Communications, Inc ( "OAC"), pursuant
to which OAC will become a separate corporate entity and retain certain assets
currently owned by CTE, and
WHEREAS, pursuant to the transaction, CTE has agreed to transfer all of
its rights, privileges and obligations under the franchise to OAC, and
WHEREAS, as provided for in Section 2.13 of the franchise, CTE must
request and be given consent by the City to transfer the franchise to another
entity prior to such transfer of the franchise occurring; and
WHEREAS, CTE has requested consent by the City to transfer all of its
rights, privileges and obligations under the franchise to OAC, to the extent that
such consent is required under the franchise, in accordance with the terms,
conditions and requirements of the franchise, and
WHEREAS, the City has conducted a review of a formal franchise transfer
application letter and accompanying materials and has concluded that consent to
the transfer of the franchise from CTE to OAC should be given, now, therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA.
SECTION 1. The City hereby consents to and approves the transfer of the
franchise from CTE to OAC, to the extent such consent is required by the terms
and conditions of the franchise and applicable law, and the assumption by OAC
of all obligations and liabilities of CTE under City of Yakima
Telecommunications System Franchise Ordinance No 2002 -24, known and
unknown, subject to apphcable law
SECTION 2. The franchise, as granted by City of Yakima
Telecommunications System Franchise Ordinance No 2002 -24, shall be amended
upon the effective date of this ordinance, as set forth in this ordinance Any
terms of City of Yakima Telecommunications System Franchise Ordinance No
2002 - not expressly amended by this ordinance shall remain in full force and
effect.
SECTION 3. As provided for in Section 7 5 of the franchise, OAC shall,
prior to the effective date of this ordinance, provide the City with proof of
insurance (refer to Subsection 7 5.2) in the amounts specified in the franchise
(refer to Subsection 7 51 (1), (2) and (3)), and, as provided for in Section 7 6 of the
franchise, OAC shall, prior to the effective date of this ordinance, provide the
City with a performance bond in the amount specified in the franchise
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,
SECTION 4. Upon the date this ordinance becomes effective, this
ordinance shall have the force of a continuing agreement with OAC and shall not
be amended, changed or otherwise altered without the consent of the City and
OAC.
SECTION 5. This ordinance shall be in full force and effect thirty (30)
days after its passage, approval and publication as provided by law and by the
City Charter
PASSED BY THE CITY COUNCIL, signed and approved this 20th day of May,
2003
CITY OF YAKIMA OPEN ACCESS
COMMUNICATIONS, INC.
By —
Mary ', ace, Mayor Its.(:-)
Attest:
City Clerk
Franchise
City COMTHEIC No F 02 001
Ordinance No 2003 -33
Publication Date: 5 -23 -2003
Effective Date: 6 -22 -2003
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State of W/rl *?•c.) )
) ss
County of �:C � Zc, )
A� `` I hereby certify that I know or have satisfactory evidence that
Cho 3 CO al --- is the person who appeared before me, and
said person acknowledged that 16)/ she signed this instrument, and on oath
stated that/ she was authorized to execute the instrument on behalf of Open
Access Communications, Inc , and acknowledged it as the
C , E 0 , of Open Access Communications, Inc., to
be the free and voluntary act of such party for the uses and purposes mentioned
in this instrument.
Dated this
1 � day of jt,t, n-e---' , 2003
Petti in . R td'Ltt &
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item Noo2I ,B
For Meeting of May 20, 2003
ITEM TITLE. An ordinance relating to the telecommunications system franchise granted to
Central Telecommunications East, Inc under City of Yakima Telecommunications System
Franchise Ordinance No 2002 -24, and approving transfer of said franchise from Central
Telecommunications East, Inc to Open Access Communications, Inc
SUBMITTED BY.t Director, Commumty and Economic Development Department
CONTACT PERSON /TELEPHONE• Randy Beehler, Telecommunications Manager,
575 -6092
SUMMARY EXPLANATION On Apnl 16, 2002, the City Council passed City of Yakima
Telecommunications System Franchise Ordmance No 2002 -24 granting Central
Telecommunications East, Inc ( "CTE ") authority to construct, operate and maintain a
telecommunications system within the City of Yakima. In late 2002, CTE began a process Ln
which it divided its major functions into two distinct areas 1) telecommunications cabling and
infrastructure development; and 2) provision of telecommunications services such as telephone
services, high -speed Internet, multichannel video /cable services, etc The CTE aim of the
company would become responsible for cabling and infrastructure development while another
arm of the company, Open Access Communications, Inc ( "OAC ") would be responsible far
provision of telecom services. In early spring 2003, the process of establishing the two separate
arms of the business was completed, including the sale of CTE. In April 2003, CTE contacted
the City's Telecommunications Division in order to request that the City transfer the telecom
franchise held by CTE to OAC The City's Telecommunications Manager requested pertinent
information be provided by both CTE and OAC in order for the City to consider the franchee
transfer request. After reviewing information provided by CTE and OAC, the City's
Telecommunications Manager has recommended that the City Council approve the transfer of
the telecom franchise held by CTE to OAC
Resolution Ordinance X Other (specify)
Contract Mail to (name & address)
Phone
Funding Source
APPROVAL FOR SUBMITTAL "� C City Manager
STAFF RECOMMENDATION Pass ordinance
BOARD /COMMISSION RECOMMENDATION N/A
COUNCIL ACTION: Ordinance passed. ORDINANCE NO 2003 -33