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HomeMy WebLinkAbout2001-067 Advanced TelCom, Inc. Franchise ORDINANCE NO. 2001- 67 AN ORDINANCE relating to the telecommunications system franchise granted to Avista Communications of Washington, Inc. under City of Yakima Telecommunications System Franchise Ordinance No. 2000 -13 and approving the transfer of the telecommunications system franchise from Avista Communications of Washington, Inc. to Advanced TelCom, Inc. WHEREAS, Avista Communications of Washington, Inc. ( "Avista ") 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. 2000 -13; and WHEREAS, Avista has entered into an agreement to complete a transaction (the "transaction ") with Advanced TelCom, Inc., dba Advanced TelCom Group, and dba ATG ( "ATG "), pursuant to which ATG will purchase certain assets of Avista in the State of Washington, including Avista's Yakima customer base and certain fiber facilities located in City rights -of -way; and WHEREAS, pursuant to the transaction, Avista has agreed to transfer all of its rights, privileges and obligations under the franchise to ATG; and WHEREAS, as provided for in Section 2.13 of the franchise, Avista 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, Avista has requested consent by the City to transfer all of its rights, privileges and obligations under the franchise to ATG, 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 Avista to ATG 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 Avista to ATG, to the extent such consent is required by the terms and conditions of the franchise and applicable law, and the assumption by ATG of all obligations and liabilities of Avista 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, shall be amended upon the effective date of this ordinance, as set forth in this ordinance. Any terms of City of Yakima Cable Telecommunications System Franchise Ordinance No. 2000 -13 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, ATG 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 7.5.1 (1), (2) and (3)) and, as provided for in Section 7.6 of the franchise, ATG 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 ATG and shall not be amended, changed or otherwise altered without the consent of the City and ATG. 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 4th day of December , 2001. CITY OF YAKIMA ADVANCED TELCOM, INC. c By: Mary ace, Mayor Its: VP/W/4*c,4 ; /}ci:PoArrAeoe-- Attest: few City Clerk City Contract No: N/A Publication Date: 12 -7 -2001 Ordinance No: 2001 -67 Effective Date: 1 -6 -2002 Franchise No. F 00 001 -3- State of C /F04'J/m ) ) ss. County of 3'e/YC1,I, ) • I hereby certify that I know or have satisfactory evidence that E'? /c W.531- L is the person who appeared before me, and said person acknowledged that he/-s1 signed this instrument, and on oath stated that he was authorized to execute the instrument on behalf of Advanced TelCom, Inc., and acknowledged it as the VP osr/fe � f✓ sit e tzd,��i � t,_ 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 /7 day of ©EC &4,5®? , 2001. BLA Print Name: Commission # 132057 NOTARY PUBLIC in and for the State trot 5« Public - caarornta of (Ai /00 resid My corrm E ves Sep 10.2005 p at Sim , My commission expires: -4- BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 1- /5 For Meeting of December 4, 2001 ITEM TITLE: An ordinance relating to the telecommunications system franchise granted to Avista Communications of Washington, Inc. under City of Yakima Telecommunications System Franchise Ordinance No. 2000 -13 and approving transfer of the franchise from Avista Communications of W hington, 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: On April 4, 2000, the City Council granted a telecommunications system franchise (the "franchise "), as authorized by City of Yakima Telecommunications System Franchise Ordinance No. 2000 -13, to Avista Communications of Washington, Inc. ( "Avista "). The franchise granted Avista the right to occupy City rights -of- way in order to construct, operate and maintain a telecommunications system. Since then, Avista has constructed a fiber optic -based telecommunications system and now provides various telecom services to customers in Yakima. Avista recently entered into an agreement with Advanced TelCom, Inc. ( "ATG ") under which ATG will purchase certain Avista assets including Avista's Yakima customer base and telecom system. In conjunction with the purchase by ATG of its Yakima assets, Avista has requested that the City give its consent to the transfer of the franchise to ATG. Section 2.13 of the franchise requires the consent of the City prior to any such transfer of the franchise occurring. Once the franchise is transferred to ATG, ATG will assume all rights, privileges and obligations of the franchise as it currently exists. The attached ordinance gives the consent of the City to the transfer of the franchise from Avista to ATG. Resolution Ordinance X Other (specify) Contract Mail to (name & address) Phone: Funding Source APPROVAL FOR SUBMITTAL: p /Lf City Manager STAFF RECOMMENDATION: Pass ordinance. BOARD /COMMISSION RECOMMENDATION: N/A COUNCIL ACTION: Ordinance passed. ORDINANCE NO. 2001 -67