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Ordinance 2001-22 ORDINANCE NO. ~OO\ - g{J- AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, AUTHORIZING AN AGREEMENT WITH AERIE NETWORK SERVICES INC. FOR THE PURPOSE OF CONSTRUCTION, MAINTAINING AND OPERATING A FillER OPTIC TRANSMISSION SYSTEM IN, UNDER, OVER AND ACROSS THE STREETS AND PUBLIC WAYS IN THE CITY OF WYLIE, REGULATING THE CONSTRUCTION WORK IN THE CITY' IN TillS REGARD, PRESCRffiING THE RELATIONSHIP AND RELATIVE RIGHTS BETWEEN AERIE NETWORK SERVICES INC. AND OTHERS WITH RESPECT TO CONSTRUCTION IN THE CITY AND LOCATION OF FACILITIES; REQUIRING CERTAIN RECORDS AND REPORTS; PROVIDING FOR INSPECTIONS; PROVIDING THE RIGHTS AND RESPONSillILITIES OF THE CITY COUNCIL; PROVIDING FOR ENFORCEMENT OF THE AGREEMENT; PRESCRffiING THE COMPENSATION TO THE CITY FROM AERIE NETWORK SERVICES INC., UNDER THE AGREEMENT; PROVIDING INDEMNITY OF THE CITY AND ITS EMPLOYEES; SETTING FORTH THE TERM OF THE AGREEMENT AND PRESCRffiING MISCELLANEOUS REQUIREMENTS FOR ADMINISTRATION OF THE AGREEMENT; PROVIDING FOR TERMINATION OF THE AGREEMENT, PROVIDING FOR A PENALTY; REQUIRING CONFORMITY WITH CONSTITUTION, STATUTES, CHARTER AND CITY CODE; LENGTH OF AGREEMENT TERMS; PROVIDING AN EFFECTIVE DATE; PROVIDING VENUE AND PROVIDING FOR A SEVERABILITY CLAUSE. WHEREAS, Aerie Network Services Inc., hereinafter "Licensee," desires the use of certain public rights-of-way within the City of Wylie for the purposes set forth below pursuant to the provisions of the laws of the State of Texas; and WHEREAS, it is the position of the City of Wylie that Licensee must obtain in order to use the public rights-of-way; and WHEREAS, the City Council has determined that it is appropriate to enter into the following agreement with Licensee; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1. PURPOSE The City and Licensee enter into this nonexclusive license agreement for the period commencing on the date of acceptance by Licensee of this ordinance and continue for a period of five (5) years after acceptance by Licensee. Under this license agreement, Licensee may acquire, erect, construct, replace, reconstruct, maintain, use and operate in the City of Wylie, Texas, hereafter sometimes referred to as "City," a fiber optic transmission system in, across, over or under the streets, highways, alleys and public ways of the City (hereinafter the "Right-of-Way"), including all necessary or desirable under ground conduits, manholes and other structures and appurtenances (hereinafter the "Facility" or "Facilities") in connection with such transmission system (hereinafter the "System") for the purpose of providing any telecommunications services authorized by law, regulation or certification, subject to this agreement. This license does not authorize Licensee to operate or provide in the City of Wylie an open video system ("OVS"), enhanced services related to OVS, advanced video gateways, other related non-programming OVS functions or similar types of services, gateways, platforms or functions, video common carriage services, "cable services," or "cable television services," as those terms may be defined from time to time under City ordinance, Texas law, the Communications Act of 1934, as amended, the Cable Communications Policy Act of 1984 (47 U.S.C.A. ~ 521, et seq., as amended) or recognized by the Federal Communications Commission or applicable rulings of the courts or FCC, or services regulated directly or indirectly by the Texas Public Utility commission (the "PUC") under the Texas Public Utility Regulatory Act without first securing a franchise or other required authorization from the City. Notwithstanding the foregoing nothing herein shall preclude Licensee from entering into a contract for the use of any portion of its system with any person or other entity for any services, whether specified herein or not, provided that said person or other entity is another franchisee, licensee or permittee of the City. SECTION 2. AGREEMENT AREA That this license agreement shall extend to all Rights-of-Way located in the City of Wylie. SECTION 3. CONSTRUCTION WORK-REGULATION BY CITY, UNDERGROUND CONDUIT USE BY CITY, JOINT USE OF TRENCH SPACE (a) The work done by Licensee in connection with the construction, reconstruction, maintenance or repair of said System shall be subject to and governed by all pertinent laws, rules, regulations of the city and State of Texas that are applicable to insuring the work done does not unduly inconvenience the public in the use of the surface of the Right-of-Way. (b) All excavations and other construction in the Right-of-Way shall be so carried on as to interfere as little as practicable with the use of the Right-of-Way and with the use of private property, in accordance with any lawful and reasonable direction given by or under the authority of the governing body of the City under the policy and regulatory powers of the City necessary to provide for public safety or convenience. SECTION 4. CONSTRUCTION AND MAINTENANCE, EXCAVATION (a) The City shall have the power at any time to order and require Licensee to remove and abate any pole, wire, cable or other Facility that is imminently dangerous to life or property, and in case Licensee, after written notice, fails or refuses to comply, the City shall have the power to remove the same at the expense of Licensee, all without compensation or liability for damages to Licensee. Licensee shall promptly restore all Rights-of-Way excavated by Licensee to substantially the same condition as before such excavation to the reasonable satisfaction of the City. Prior to construction, Licensee shall submit engineering plans to the City for review and approval when such plans are for projects which involve significant amounts of both new buried cable and underground systems in public Rights-of-Way. Approval of such plans shall not be unreasonably delayed, withheld or conditioned by the City. (b) Except in an emergency, Licensee shall not excavate any pavement in any Right-of-Way or significant amounts of any unpaved public Right-of-Way without first securing permission of the City, but such permission shall not be unreasonably delayed, withheld or conditioned if the proposed excavation is in accordance with the terms of this agreement. The City shall be notified as soon as practicable regarding work performed under emergency conditions. SECTION 5. WORK BY OTHERS, CONSTRUCTION BY ABUTTING OWNERS, ALTERATION TO CONFORM WITH PUBLIC IMPROVEMENTS (a) The City reserves the right to lay, and permit to be laid, sewer, gas, water and other pipe lines or cables and conduits, as well as drainage pipes and channels and streets and to do and permit to be done, any underground and overhead installation or improvement that may be deemed necessary or proper by the governing body of the City of Wylie, in, across, along, over or under any Right-of-Way occupied by Licensee, and to change any curb or sidewalk or the grade of any street and to maintain all City of Wylie facilities provided that such work is for the municipal purposes of the City. In permitting such work to be done, the City shall not be liable to Licensee for any damage so caused, nor shall the City be liable to Licensee for any damages arising out of the performance by the City or its contractors or subcontractors, not willfully and unnecessarily occasioned; provided, however, nothing herein shall relieve any other person or corporation from liability for damage to Facilities or System of Licensee. City shall not be liable for any damage to Licensee's property or for any direct or consequential damage to Licensee or its customers that may arise if City, its agents, employees or contractors for any reason causes the flow of data or light impulses through said Facilities to be interrupted or stopped and Licensee shall hold City harmless and indemnify City for said damages including damages arising from City's own negligence. Nothing herein shall relieve any person, other than the City, of liability, including without limitation the City's contractors or subcontractors from liability for damage to Facilities or System of Company. (b) Whenever by reason of changes in the grade or widening of a street or in the location or manner of constructing a water pipe, gas pipe, drainage channel, sewer, or other City-owned underground or aboveground Facilities, it is deemed necessary by the City to move, alter, change, adapt, or conform the underground or aboveground facilities of Licensee, Licensee shall make the alterations or changes, on alternative Right-of-Way provided by the City, if necessary, as soon as practicable when ordered in writing by the City without claim for reimbursement or damages against the City. (c) If the City requires Licensee to adapt or conform its Facilities, or in any way or manner to alter, relocate or change its property to enable any other corporation or person, except the City, to use, or to use with greater convenience, any right-of-way, street, alley, highway or public place, Licensee shall not be required to make any such changes until such other corporation or person shall have undertaken, with solvent bond, to reimburse Licensee for any loss and expense which will be caused by, or arise out of such removal, change, adaptation, alteration, conformance or relocation of Licensee's Facilities; provided, however, that the City shall never be liable for such reimbursement. SECTION 6. INDEMNITY AND INSURANCE A. Indemnity As a condition hereof, Licensee agrees and is bound to defend, indemnify and hold the City, its officers, agents and employees, harmless against any and all claims, lawsuits, judgments, costs and expenses (including attorney's fees and costs) for personal injury (including death), property damage or other harm for which recovery of damage is sought, suffered by any person or persons, that may arise out of or be occasioned by Licensee's use, occupancy and maintenance of the Right- of-Way or Licensee's System within the Right-of-Way, from any act or omission of any representative, agent, customer and/or employee of Licensee, or by Licensee's breach of any of the terms or provisions of this license agreement, or by any negligent or strictly liable act of omission of Licensee, its officers, agents, employees or subcontractors in the use, occupancy and maintenance of the Right-of-Way or Licensee's installations and improvements within the licensed premises; except that the indemnity provided for in this paragraph shall not apply to any liability resulting from the sole negligence or fault of the City, its officers, agents, representatives, employees or separate contractors, and in the event of joint and concurring negligence or fault of both the Licensee and the City, responsibility and indemnity, if any, shall be apportioned comparatively in accordance with the laws of the State of Texas, without, however, waiving any governmental immunity available to the City under Texas law and without waiving any defenses of the parties under Texas law. The provisions of this paragraph are solely for the benefit of the parties hereto and not intended to create or grant any rights, contractual or otherwise, to any other person or entity. This obligation to indemnify and defend shall also include any claim for damage that any utility or communication company, whether publicly or privately owned, may sustain or receive by reason of Licensee's use of the Right-of-Way or Licensee's Facilities located thereon. Not withstanding the foregoing, Licensee shall not be responsible in any way for any claim or damages incurred or alleged to be incurred by any utility or communications company arising as a result of the City's grant of this license to Licensee. In addition to the foregoing, Licensee covenants and agrees never to make a claim of any kind or character whatsoever against the City for damage of any kind that it may suffer by reason of the installation, construction, re-construction, operation or maintenance of any public improvement, utility or communication facility, whether presently in place or which may in the future be constructed or installed, including but not limited to, any water or wastewater mains or storm sewer facilities, regardless of whether such damage is due to flooding, infiltration, back flow or seepage caused from the failure of any installation, natural causes of City negligence. It is the intention of this indemnity agreement on the part of Licensee, and as a condition of this license, that except as otherwise provided herein, it shall be full and total indemnity agaicst any kind or character of claim whatsoever that may be asserted against the City, by reason of or as a consequence of having granted permission to Licensee to use and maintain the Right-of-Way. City should give Licensee written notice of the making of any claim or the commencement of any action, suit or other proceeding for which Licensee could be liable for indemnification under this license. In all instances in which Licensee is required under this license to indemnify City, such indemnification obligations shall be expressly conditioned upon Licensee having the right to investigate, compromise and defend against such claims. City shall cooperate with Licensee in the defense of any litigation by furnishing such information and Licensee may request assistance in the disposition of such matter. B. Insurance It is understood and agreed and a condition hereof, that Licensee shall procure and keep in full force and effect commercial general liability insurance coverage issued by an insurance company authorized and approved by the State of Texas, acceptable to the City and issued in the standard form approved by the State Board of Insurance. The insured provisions of this policy must name the City, its officers and employees as additional insured protecting the City against any and all claims for damages to persons or property as a result of or arising out of the use, operation, and maintenance by Licens~e of the Right-of-Way and Licensee's Facilities in connection therewith and located therein. The commercial general liability coverage must provide combined single limits of liability for bodily injury and property damage of not less than $1,000,000 for each occurrence. The coverage must be on an "occurrence" basis and must include coverage for premises operations, independent contractors, products/completed operations, personal injury, contractual liability, and medical payments. This insurance shall also include coverage for underground, explosion, and collapse hazards. 1. Each policy must include a cancellation provision in which the insurance compan~ is required to notify Licensee and the City in writing not fewer than 30 days before cancelIng, failing to renew, or making a material change to the insurance policy. 2. Licensee shall carry said insurance at its expense and shall furnish the City proof of such insurance. In the event said insurance should terminate during the license term hereof, or Licensee fails to furnish proof of insurance coverage in accordance with the specifications as required by this section, City may in its sole discretion terminate this license agreement. SECTION 7. ADMINISTRATION OF LICENSE (a) The City Manager or his designee is the principal City officer responsible for the administration of this agreement and shall review the operations of Licensee in the Right-of-Way under this agreement. (b) It shall be the right of the governing body of the City of Wylie at all times to keep fully informed as to all matters in connection with or affecting the construction, reconstruction, maintenance, operation and repair of Licensee's Facilities in the Right-of-Way and the recording and reporting by Licensee of all material changes to such Facilities. SECTION 8. RECORDS (a) Licensee shall keep complete and accurate maps and records of its Facilities under this ordinance and agreement. The City may require the keeping of additional records or maps, which are reasonably necessary for purposes of identifying, accounting for, and reporting changes in the System. (b) The City may, at reasonable times and for reasonable purposes under this ordinance and agreement, examine, verify or review the documents, maps, plans and other records of Licensee directly related to this agreement, Licensee shall make the above records available to City for review at 2000 N. Hwy. 78, Wylie, TX 75098, within a reasonable time after demand by City Manager or designee. To the extent permitted by the Texas Public Information Act, the City agrees to keep any information provided to it by Licensee under this agreement as confidential and shall treat such confidential information as the City treats its own confidential and proprietary information; however, this shall not include records or maps which are reasonably necessary for purposes of identifying, accounting for, and reporting changes in the System for the reason many others use the Rights-of-Way. ( c) The City shall have the power to require that the Licensee report to the City such information relating to the Licensee as the City may consider useful in the identifying, accounting for, and reporting of System changes for the purposes of this ordinance. The City shall have the right to establish forms for all reports, determine the time for reports and the frequency with which any reports are to be made, and require that any reports be made under oath. (d) The City may, at any time, make inquires pertaining to this license relating to the Licensee's operation of the System within the City of Wylie. The Licensee shall respond to such inquires on a timely basis. (e) At the time of completion and any time Facilities have been changed, or upon request of the City, Licensee shall file with the City Manager or designee, a corrected list of Facilities located in the public right-of-way, and an up-to-date map of the System, showing all Facilities newly installed, expended and removed during previous year, as well as those which are currently in use. (b) Upon filing of the acceptance, this agreement shall ~ecome ~ffect~ve. In th~ eve~t such acceptance is not filed within sixty (60) days after the final readIng of this ordInance, thIS ordInance shall terminate and become null and void. ( c) As a further condition precedent to this agreement becoming effective, Licensee shall send to the City Manager or designee of the City of Wylie, Texas, the name and address of the person Licensee designates to receive official notices from the City of Wylie. SECTION 12. TERMINATION OF AGREEMENT AND REMOVAL OF FACILITIES (a) If Licensee fails to make payment as provided by this ordinance and agreement, the City shall send two written notices to Licensee. Thirty (30) days after the second written notice of breach or default from the City, the City may order that this ordinance shall become null and void and send a written notice of termination from the City of Wylie and City may order the removal of any of Licensee's Facilities which are above the surface of the rights-of-way and if Licensee should refuse, City may remove such Facilities at Licensee's expense. (b) It is further agreed that upon Licensee's failure to cure a default as set forth in subparagraph (a) above, the City shall reserve and have the absolute right to terminate this license agreement. The City shall upon such determination become immediately entitled to possession of the Right-of-Way without giving any notice and without the necessity of legal proceedings to obtain possession thereof, that any rentals paid in advance shall be returned to Licensee in proportion to the unexpired rental period; and in any event upon termination or cancellation by City or Licensee, Licensee shall, unless otherwise agreed to by the City, remove any Facilities from the Right-of-Way at Licensee's expense. All work shall be done to the satisfaction of City. SECTION 13. CONFORMITY TO CONSTITUTION, STATUTES, CHARTER AND CITY CODE This ordinance is passed subject to the provisions of the Constitution and the laws of the United States of America, the State of Texas and the charter provisions of the City of Wylie and applicable sections of the Wylie City Code. SECTION 14. USE OF PREMISES Licensee is prohibited from using the Rights-of-Way in any manner which violates any applicable Federal, State or local laws, regulations, rules and orders, regardless of when they become or became effective, including without limitation, those relating to health, safety, noise, environmental protection, waste disposal and water and air quality, and shall provide satisfactory evidence of compliance upon the request of the City. Should any discharge, leakage, spillage, emission or pollution of any type occur upon or from the Rights-of-Way due to Licensee's use and occupancy thereof, and not due to any pre-existing condition, Licensee, at its expense, shall be obligated to clean up the affected Rights-of-Way to the satisfaction of the City and any other governmental body having jurisdiction there over. The City may, at its option, clean the affected Rights-of-Way if the City elects to do so, at the Licensee's expense. Licensee agrees that the indemnity provisions contained in Section 6.A herein shall be fully applicable to the requirements of this paragraph, in the event of Licensee's breach of this paragraph or as a result of any such discharge, leakage, spillage, emission or pollution arising out of the Licensee's use of the licensed premises. Licensee must also obtain any and all necessary governmental licenses and permits necessary in order to use the Rights-of-Way and Facilities for Licensee's intended purpose. SECTION 15. EFFECTIVEDATE This ordinance shall take effect immediately from and after its final reading, acceptance and filing in accordance with the provisions of Section 11 of this ordinance. SECTION 16. EXTENT OF AGREEMENT This license agreement embodies the complete agreement of the parties, superseding all oral or written previous and contemporary agreements between the parties and relating to matters in this license agreement, and except as otherwise provided in this license agreement cannot be modified without written agreement of City and Licensee to be attached to and made a part of this license agreement. SECTION 17. SEVERABILITY That the terms and provisions of this ordinance shall be deemed to be severable and that if the validity of any section, subsection, sentence, clause or phase of this ordinance should be declared by a court of competent jurisdiction to be invalid, the same shall not affect the validity of any other section, subsection, sentence, clause or phrase of this ordinance. If any material term or provision of this ordinance is so declared invalid, the parties shall promptly begin negotiations for a replacement. SECTION 18. VENUE This agreement is performable in the State of Texas and exclusive legal venue for any litigation arising under this license shall lie in Collin County, Texas, and shall be governed by the laws of the State of Texas PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF WYLIE , TEXAS, this -6 day of ~ ' 2001. JO Y, Mayor ATTEST: ._i_,,~ ...- ,~__";'.J / i cr<i- \~f.