HomeMy WebLinkAboutOrdinance 14665
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ORDINANCE NO. I ~~ ~_
AN ORDINANCE AMENDING ORDINANCE NO. 14427 BY REVISING
THE LOCATION AND NUMBER OF LINEAR FEET OF PUBLIC
RIGHT-OF-WAY AUTIiORIZED FOR USE BY PF.NET NETWORK
SERVICE CORP. IN TAE CONSTRUCTION, MAINTENANCE AND
OPERATION OF A TELECOMMUNICATIONS SYSTEM FOR THIS
TRANSMISSION OF LONG DISTANCE TELEPHONE SERVICES;
REQUIRING PF.NET NETWORK SERVICE CORP. TO EXECUTE AN
AMENDED PUBLIC RIGHT-OF-WAY USE AGREEMENT REGARDING
SUCH AUTHORIZATION; PROVIDING FOR THE REPEAL OF ANY
DIRECTLY CONFLICTING PROVISIONS IN ORDINANCE NO. 14427;
PROVIDING FOR PUBLICATION; AND PROVIDING AN EFFECTIVE
DATE.
The following statements are true and correct and constitute the bans upon which the City
Council of the City of Fort Worth ("City") has adopted this Ordinance-
A. On December 12, 2000, pursuant to M&C G-13100, the City Council adopted
Ordinance No 14427 which granted PF.Net Network Services Corp ("Company") a franchise
and license for the use of certain specific public rights-of--way in the City in order for Company to
construct, maintain and operate a telecommumcat~ons system used for the transmission of long
distance services ("System") in accordance with the Ordinance and a Public Right-of-VJay Use
Agreement executed by Company on or before January 12, 2001 ("Agreement")
B. Company now wishes to use additional public rights-of--way in the City for
purposes of constructing, maintaiung and operating its System. The City ~ willing to authorize
Company to use such additional public rights-of--way in accordance with this Ordinance and the
Agreement, as amended by Amendment No 1 to Public Right-of--Way Use Agreement attached
hereto as Exhibit 1 (the "Amendment")
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS:
Section 1. Subject to the execution of the Amendment, which ~ hereby made a part of this
Ordinance for all purposes, the City hereby grarrts Company a franchise and license to locate,
place, attach, install, operate and maintain its System in, on, above and within the portions of the
public rights-of--way in the City identified ii Exhibit "C", which is attached to the Amendment.
Sects®n 2. In accordance with and as required by Section 2 of Chapter XXV of the City's
Charter, the City Secretary ~ hereby directed to publish this Ordinance m its entirety once each
week for four (4) consecutive weeks within a period of thirty (30) days following adoption by the
J City Council in the official newspapers of the City Company shall pay for or reimburse the City
for all expenses incurred from such publication.
Section 3. Ordinance No 14427 shall remain in full force and effect except to the extent that
any of its provisions are in direct conflict with the provisions of this Ordinance, m which case the
conflicting provisions of Ordinance No 14427 are hereby repealed.
Section 4. This Ordinance shall be in full force and effect following (i) its adoption; and (ii) its
publication in accordance vv~th Section 2, and (iii) in accordance with Section 1, the execution of
the Amendment attached hereto as Exhibit 1
ADOPTED• ~ ~ p / ~ ~ ~ ~7
Date hf & C Number
EFFECTIVE DATE ~q ~a ~
APPROVED AS TO FORM AND LEGALITY
By.
Peter Vaky
Assistant City Attorney
City of Fort Worth
2
AMENDMENT NO. 1 TO
PUBLIC RIGHT-OF-WAY USE AGREEMENT
BETWEEN PF.NET NETWORK SERVICE CORP. AND
CITY OF FART WORTH
The followmg statements are true and correct and constitute the basis upon which PF.Net
Network Service Corp. has executed this Amendment No 1 to Public Right-of--Way Use
Agreement ("Amendment")
A. On December 12, 2000, pursuant to M&C G-13100, the City Council adopted
Ordinance No 14427 which granted PF.Net Network Services Corp. ("Company") a franchise
and license for the use of certain specific public nghts-of--way m the City m order for Company to
construct, mamtam and operate a telecommunications system used for the for the transmission of
long distance services ("System") m accordance vv~th the Ordmance and a Public Right-of--Way
Use Agreement executed by Company on or before January 12, 2001 ("Agreement").
B. The City Council has adopted a subsequent ordinance amending Ordinance No
14427 that grants Company a franchise and license for the use of additional specific public rights-
of-way m order for Company to construct, maintain and operate its System m such additional
specific public nghts-of--way ("Amending Ordinance"), subject to execution by Company of this
Amendment to the Agreement.
C. In accordance with the Amending Ordinance, Company desues to enter into this
Amendment.
NOW, THEREFORE, Company agrees as follows:
1. Section 1 of the Agreement ("Definitions") ~s hereby amended by adding those portions of
the public rights-of--way m the City identified m Exhibit "C" to the definition of "Public Rights-
of-Way" Exhibit "C" is attached hereto and hereby made a part of the Agreement, as amended
by this Amendment, for all purposes.
2. Section 3 1 of the Agreement ("Public Right-of--Way Use Fee") is hereby deleted m its
entirety and replaced with the following:
On or before January 12, 2001 Company paid the City $208,375 00 as
compensation for use of those portions of the Public Rights-of--Way described m
Exhibits "A" and "B" of the Agreement between the Effective Date of Ordinance
No 14427 and the first anniversary thereof. Within thirty (30} days following the
adoption of the Amending Ordinance, Company shall pay the City an additional
$18,367 00 for use of those portions of the Public Rights-of--Way described it
Exhibit "C" between the effective date of the Amending Ordinance and the first
anniversary of Ordinance No 14427 Thus additional amount of compensation
3
equals (i) four percent (4%) of the uutial construction cost of that portion of the
System in those portions of the Public Rights-of--Way described in Exhibit "C" plus
(ii) an annual fee of $1.50 for each linear foot of those portions of the Public
Rights-of--Way described in Exhibit "C" used by Company, prorated in accordance
with the number of days remaining between the effective date of the Amending
Ordinance and the first anniversary of Ordinance No 14427
On or before the first anniversary and each subsequent anniversary of
Ordinance No 14427, Company shall pay the City a sum equal to (i) the per linear
foot charge paid by Company during the immediately preceding twelve (12) month
period, increased by a percentage that equals upward percentage change, if any, in
the Implicit Price Deflator for the Gross Domestic Product during such twelve
(12) month period ("GDP Change"), as determined by the United States
Department of Commerce or successor agency, multiplied by (ii) the number of
linear feet of Public Right-of--Way used by Company at the time (collectively the
"Might-of--Way Use Fee"). If m any given twelve (12) month penod there is no
GDP Change or the GDP Change is downward, the per linear foot charge shall
remain constant until the following anniversary date of Ordinance No. 14427 In
no event shall the Right-of--Way Use Fee ever be decreased. Company hereby
acknowledges and agrees that the amount of the Right-of--Way Use Fee constitutes
dust and reasonable compensation to the City for Company's use of the Public
Rights-of--Way as provided by this Agreement, as amended.
3. All terms and conditions of the Agreement that are not expressly amended in this
Amendment shall remain in full force and effect. Capitalized terms used but not specifically
defined in this Amendment shall have the same meanings as assigned by the Agreement,
Ordinance No 14427 or the Amending Ordinance, as applicable.
4. As a condition precedent to the effectiveness of this Amendment, Company acknowledges
that by Company's execution of this Amendment by the individual whose signature appears
below, Company accepts and agrees to the terms, conditions and provisions of the Ordinance No
14427, the Amending Ordinance and the Agreement, as amended by this Amendment.
ACCEPTED AND AGREED TO•
PF.NET NETWORK SERVICES CORP.
a D laware corporation.
~~,~
/~~s
Tom R McCaleb
Vice President
4
EXHIETI' "C"
Company may use the following portions of the Public Rights-of--Way in the City
• Approximately 9,2401inear feet comprisuig portions of Third Street; Calhoun Street; Belknap
Street; Houston Street; Seventh Street; Throckmorton Street; Eleventh Street; Ninth Street;
Commerce Street; and Forth Street, as further depicted on the attached map and descnbed as
the "Downtown Loop"
City of Fort Worth, Texas
~11~Ayar And caunci( o~»~un~~At~an
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DATE REFERENCE NUMBER LOG NAME PAGE
6/19/01 **G-1327'i 02PF-NET 1 of 1
SUBJECT ORDINANCE AMENDING ORDINANCE NO 14427 BY REVISING THE LICENSE
GRANTED PF NET NETWORK SERVICE CORP FOR USE OF CERTAIN CITY
STREETS
RECOMMENDATION
It is recommended that the City Council adopt the attached ordinance which amends Ordinance No
14427 by revising the location and number of linear feet permitted for the construction, maintenance
and use of a long distance telecommunications system by PF Net Network Service Corp in certain
streets and public rights-of-way of the City, and by revising the fee to be paid to the City for such use of
such streets and rights-of-way
DISCUSSION
On December 12, 2000, the City Council adopted Ordinance No 14427, granting to PF Net Network
Service Corp a license to use certain City streets and other public rights-of-way for the construction,
maintenance and use of a long distance telecommunications system
The term of the license is for twenty-five (25) years from the effective date of Ordinance No 14427 In
consideration for the license to use the prescribed City streets, PF Net Network Service Corp agreed to
pay the City cone-time payment equal to four percent (4%) of the estimated construction costs of that
portion of the cable installed in the rights-of-way, plus an annual amount of not less than $1 50 per
linear foot of City-owned right-of-way granted under the ordinance The annual amount is adjusted
each year proportionally to the percentage change in the Implicit Price Deflator for the Gross Domestic
Product as determined by the U S Department of Commerce
PF Net Network Service Corp is extending its telecommunications system, and has requested that
Ordinance No 14427 be amended to include additional rights-of-way In consideration of the .expanded
license, PF Net Network Service Corp will make a payment of $18,367 consisting of four percent (4%)
of the estimated construction costs ($11,437) and a prorated annual fee of $6,930 for the additional
rights-of-way The new annual payment will be based on 96,143 linear feet. The next annual payment,
due on or before January 12, 2002, will be $146,137 after adjustments for inflation
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that this action will have no material effect on City funds
CB k
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
Charles Boswell 8511
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Originating Department Head: COUNCIL
CIT
Charles Boswell 8511 (from) ~l)~ ~ 9 ZoQ~
Additional Information Contact: t~ti..,~ ~~~,,.~~
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Danny Reed 6145 rth, T :as
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City
Adopted Ordlnance N~. ~~~