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HomeMy WebLinkAbout2003-049 Telecommunications system franchise - Advanced TelCom, Inc. ORDINANCE NO. 2003- 49 AN ORDINANCE relating to the telecommunications system franchise granted to GE Business Productivity Solutions, Inc. under City of Yakima Telecommunications System Franchise Ordinance No. 2000 -13, as amended, and approving the transfer of the telecommunications system franchise from GE Business Productivity Solutions, Inc. to Advanced TelCom, Inc. WHEREAS, GE Business Productivity Solutions, Inc. ( "GEBPS ") 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 as granted by the City of Yakima, (the "City ") under City of Yakima Telecommunications System Franchise Ordinance No. 2000 -13 (the "franchise "), as amended by Ordinance Nos. 2001 -67 and 2002 -50; and WHEREAS, GEBPS had previously entered into an agreement with Advanced TelCom, Inc. ("ATI ") d /b /a Advanced TelCom Group, pursuant to which GEBPS . would purchase certain assets of ATI in the State of Washington and ATI would transfer all of its rights, privileges and obligations under its existing franchise to GEBPS, which required ATI to request and be given consent by the City, which consent was given in Ordinance No. 2002 -50; and WHEREAS, the aforementioned transaction between GEBPS and ATI was never consummated but was replaced by another transaction whereby ownership and control of ATI as a company would be transferred to a related company of GEBPS and ATI would remain the franchisee; and WHEREAS, to facilitate the latter transaction, GEBPS seeks to have the City transfer all of its rights, privileges and obligations under the franchise to ATI; and WHEREAS, as provided for in Section 2.13 of the franchise, GEBPS 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, GEBPS has requested consent by the City to transfer all of its rights, privileges and obligations under the franchise to ATI, 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's Telecommunications Manager has conducted a review of the proposed franchise transfer and has concluded that consent to the transfer of the franchise from GEBPS to ATI 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 GEBPS to ATI, to the extent such consent is required by the terms and conditions of the franchise and applicable law, and the assumption by ATI of all obligations and liabilities of GEBPS under City of Yakima Telecommunications System Franchise Ordinance No. 2000 -13, known and unknown, subject to applicable law. SECTION 2. The franchise, as granted by City of Yakima Telecommunications System Franchise Ordinance No. 2000 -13, as amended, shall be further 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. 2000 -13, as amended, 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, ATI shall, prior to the effective date of this ordinance, provide the City with proof of insurance, as described in Subsection 7.5.2 of Ordinance No. 2000 -13, in the amounts specified in the franchise (refer to Subsection 7.5.1 (1), (2) and (3)) and, as provided for in Section 7.6 of the franchise, ATI shall, prior to the effective date of this ordinance, provide the City with a performance bond in the amount specified in the franchise. -2- SECTION 4. Upon the date this ordinance becomes effective, this ordinance shall have the force of a continuing agreement with ATI and shall not be amended, changed or otherwise altered without the consent of the City and ATI. 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 15th day of July , 2003. CITY OF YAKIMA ADVANCED TELCOM, INC. 0 -C y ) A t Mary e, Mayor Its: � e ., d Attest: GE BUSINESS PRODUCTIVITY SOLUTIONS, INC. illr L. - P y TK O a C ty Clerk (,9crAtia) k °*...— i , Its: v- 24:,;. . tiff` Franchise City ONNINKt No: F 00 001 Ordinance No: 2003 -49 . Publication Date: 7 -18 -2003 Effective Date: 8 -17 -2003 -3- State of & _ l ( �_ ) ) ss. County of ) I hereby certify that I know or have satisfactory evidence that p, ;d, k R is the person who appeared before me,; and said person acknowledged that he /she signed this instrument, and on oath stated that he /she was authorized to execute the instrument on behalf of Advanced TelCom, Inc., and acknowledged it as the Pr e s of Advanced TelCom, Inc., to be the free and voluntary act of such party for the uses and purposes mentioned in this instrument. Dated this a day of A ti.-- 2003. Print Name: Karen ©' ke l ( - 'v NOTARY PUBLIC in and for the State of j Geo r c o-- , residing at 36o9 7 Soil• Mn,-I F Cr; v Twc key- G4 3ocB`f My commission expires: Notary Public, Dekal b County, Georgia C Q My Commission Expires, Nov. 4, State of ) ) ss. County of'CNk ) I hereby certify that I know or have satisfactory evidence that v; c M. ®' I1Je� Il is the person who appeared before me, and said person acknowledged that he /she signed this instrument, and on oath stated that he /she was authorized to execute the instrument on behalf of GE Business Productivity Solutions, Inc., and acknowledged it as the Pre.s4e.r4- of GE Business Productivity Solutions, Inc., to be the free and voluntary act of such party for the uses and purposes mentioned in this instrument. Dated this °= day of A G 2003. - ' y Print Name: mare V\e/te-y _ = NOTARY PUBLIC in and for the State of act) r5i , residing erg at (36 17 -SNAIL Mar 60,0,4 /Jriv��t�c G'Q c3009 • My commission expires: Notary Public, Dekalb County, Geormi My Commission Expires, Nov. 4, 2005 -4- r BUSINESS OF THE CITY COUNCIL • YAKIMA, WASHINGTON AGENDA STATEMENT Item No. * a 3 For Meeting of July 15, 2003 ITEM TITLE: An ordinance relating to the telecommunications system franchise granted to GE Business Productivity Solutions, Inc. under City of Yakima Telecommunications System Franchise Ordinance No. 2000 -13, as amended, and approving transfer of said franchise from GE Business Productivity Solutions, Inc. to Advanced TelCom, Inc. SUBMITTED BY: Bill Cook, Director, Community and Economic Development Department CONTACT PERSON /TELEPHONE: Randy Beehler, Telecommunications Manager, 575 -6092 SUMMARY EXPLANATION: In April 2000, the City Council passed an ordinance granting the City's first telecommunications system franchise to Avista Communications of Washington, Inc. ( "Avista "). In December 2001, the City Council approved transfer of the telecom system franchise to Advanced TelCom Group, Inc. ( "ATG ") after ATG purchased Avista's Yakima system. In September 2002, the City Council approved transfer of the telecom system franchise to GE Business Productivity Solutions, Inc. ( "GEBPS ") in advance of GEBPS' planned purchase of ATG's Yakima system. In May 2003, the Yakima telecom system at issue came under the control of Advanced TelCom, Inc. ( "ATI "), a sister company of GEBPS. Section 2.13 of the telecom system franchise requires that the franchise grantee receive consent from the City Council prior to the transfer of the telecom system franchise occurring. After reviewing . information and documentation provided by GEBPS and ATI, the City's Telecommunications Manager recommends that the City Council give its consent to the transfer of the telecom system franchise from GEBPS to ATI. The attached ordinance authorizes transfer of the telecom system franchise granted by City of Yakima Telecommunications System Franchise Ordinance No. 2000 -13, as amended, from GEBPS to ATI. Resolution Ordinance X Other (specify) Contract Mail to (name & address) Phone: Funding Source APPROVAL FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Pass ordinance. BOARD /COMMISSION RECOMMENDATION: N/A COUNCIL ACTION: Ordinance passed. ORDINANCE NO. 2003 -49 •