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HomeMy WebLinkAboutCC 18 ASSESS DIST 86-2 08-07-89?~..~?~'~,.. ~ ~ ,..q ~ ,];~. CONSENT CALENDAR ., ~.~. ,~ ~'; ~..,, _ ~ NO. 18 TO: WILLIAM HUSTON, CITY MANAGER FROM: PUBLIC WORKS DEpARTMENT/ENGINEERING DIVISION SUBJECT: ASSESSMENT DISTRICT NO. 86-2 MASTER UTILITY AGREEMENT (PACIFIC BELL) RECOMMENDATION: That the Tustin city Council at their meeting of August 7, 1989 approve the Pacific Bell agreement for telephone improvements within Assessment District No. 86-2 and authorize the Mayor to execute said agreement. BACKGROUND: Assessment District No. 86-2 provides for street, storm drain and utility construction/installations within the East Tustin area bounded by Irvine Boulevard on the south, Jamboree Road on the east, the northerly city limits and the westerly city limit adjacent to the unincorporated county territory. After construction/installation of the telephone improvements (conduits and structures) by the Assessment District, the District will transfer the ownership of these facilities to Pacific Bell by the filing of a notice of completion with the County Recorder. These telephone improvements will be permanently and irrevocably vested in Pacific Bell and will be constituted as part of its telephone system. The agreement also provides for the assessment district to reimburse Pacific Bell for any construction costs. These Pacific Bell construction costs will consist solely of the income tax component equal to 28% of the value of the telephone improvements installed by the City and transferred to Pacific Bell. DISCUSSION: This agreement has been reviewed and approved by the city attorney's office and is now ready for the city council's review and approval. This telephone company agreement will have no impact to the city's general fund. All payments will be funded by Assessment District 86-2 monies. Bob Ledendecker Director of Public Works/City Engineer BL:mv CITY OF TUSTIN ASSESSMENT DISTRICT NO. 86-2 TELEPHONE IMPROVEMENTS - PACIFIC BELL THIS AGREEMENT is made by and between the City of Tustin, a municipal corporation ( "City" ), and Pacific Bell, a public utility corporation organized under the laws of 'the State of California ("PB"). 1. RECITALS: This Agreement is made with reference to the following facts, among others: 1.1 The City Council of 'the City has undertaken proceedings pursuant 'to the Municipal Improvement Act of 1913, to form a special assessment district known and d~si~n, ated as ASSESSMENT DISTRICT NO. 86-2 (hereinafter referred to as the "Assessment District" or "District") and the area proposed to be included within said Assessment District is set forth and shown on the map marked Exhibit A attached hereto and incorporated by 'this reference. 1.2 The City Council has, by Resolution, authorized the initiation of the proceedings for the Assessment District. 1.3 PB is subject to the jurisdiction and re~:lation of the California Public Utilities Commission and has been issued a certificate of public convenience and necessity authorizing and obligating it to provide telephone service to the territory within the Assessment District.. 1.4 The improvements to be constructed and installed include, among other things, the -installation of underground telephone facilities consisting of manholes, conduit, cable and related facilities necessary to provide telephone facilities (collectively referred to hereinafter as the "Telephone Improvements") which are shown on Exhibit B attached hereto and incorporated herein by this reference. 1.5 In accordance with Streets and Highways Code Section 10110, the parties desire to enter into an agreement to provide for the design, construction and installation of the Telephone Improvements which are to be owned and managed by PB and to provide for the payment of PB's construction costs. PB's constuction cost for telephone improvements installed pursuant to this agreement will consist solely of a tax component equal to 28% of the value of the telephone improvements to be installed by the City and transferred to PB. 2. AGREEMENT: NOW THEREFORE, in consideration of the recitals and mutual obligations of the parties as herein expressed, City and PB agree as follows' 2.1 This Agreement shall become effective upon receipt by City of the proceeds from the sale of any bonds or bond anticipation notes for the Assessment District and City shall so advise PB of such receipt. 2.2 City shall construct or cause the construction and installation, of the Telephone Improvements shown on Exhibit B according to PB's specifications. 2.3 PB shall furnish and supply or cause to be furnished and supplied by others, all plans, specifications, drawings, administration, supervision, inspection, or any other services required for the construction and installation of the Telephone Improvements by City. 2.4 PB shall coordinate any work it performs or causes to be performed with the work to be done by City or its general contractor. 2.5 City agrees that in any construction contact entered into between City and any contractor for the purpose of constructing the Facilities to be installed by City, City shall require the contractor to obtain and maintain until 'the completion of the contract, liability insurance naming PB as additional insured under the policy or policies providing such insurance coverage. 2.6 City shall indemnify, defend and hold PB harmless against any loss or liability to persons or property, including any liability for injury or death to any employee of City or its contractors and agents, that occurs prior to the filing of the notice of completion as provided in Section 2.10 and arises from the negligence or willful misconduct of City, its contractors, agents or employees in connection with the work to be performed by City hereunder, but only in the event that the City's contractors fail to obtain the insurance required under Paragraph 2.5 hereof, or to the extent that PB is not actually afforded coverage for the loss or liability in question by the carrier providing any such insurance. This provision shall not affect any of PB's rights at law or equity, either before or after the filing of notice of completion, nor shall it limit the insurance coverage provided for in Paragraph 2.5. 2.7 PB shall indemnify, defend and hold City harmless against any loss or liability to persons or property, including any liability for injury or death to any employee of City or its contractors and agents, that occurs prior to the filing of the notice of completion as provided in Section 2.10 and arises from the negligence or willful misconduct of PB, its contractors, agents or employees in connection with any work to be performed by PB hereunder, but only in the event 'that PB's contractors fail to obtain the insurance required by PB, or to the extent that City is not actually afforded coverage for the loss or liability in ~mestion by the carrier providing any such insurance. This provision shall not affect any of City's rights at law or equity, either before or after the filing of the notice of completion, nor shall it limit the insurance coverage required by PB. 2.8 All payments required to be paid by City to PB under this Agreement shall be payable solely and exclusively from the Improvement Fund for the Assessment District and shall .not constitute a charge or claim upon the general revenues of the City or a debt of the City within the meaning of any provisions or limitation of the Constitution or. statutes of the State of California. 2.9 Upon completion of the installation and construction of the Telephone Improvements by City, and the acceptance thereof by City and PB, City shall file a Notice of Completion with the County Recorder and thereupon title to the Telephone Improvements shall be permanently and irrevocably vested in PB and constitute part of its telephone system and shall thereafter be used, operated and maintained by it as part of its system. 2.10 Upon completion of the telephone improvements, inspection and acceptance by PB, and transfer of ownership according to this agreement, City shall pay to PB a tax component equal to 28% of the value of installed Telephone Improvements in accordance with California Public Utilities Commission decisio~ 87--09-026. 2.11 This Agreement shall at all times be subject to such changes or modifications by the Public Utilities Commission of the State of California ("PUC"), as said Commission may direct, from time to time, in the exercise of its jurisdiction. 2.12 Following completion of the Telephone Improvements according to the Agreement, PB shall construct all subsequent telephone system e.xtensions and services in accordance with its rules then on file with and approved by the PUC. PB agrees that it shall ~ot enter into any refund agreement with a developer pertaining to facilities installed pursuant to this Agreement. 2.13 Any notice authorized or required by this Agreement shall be deemed to have been sufficiently given if and when sent by registered or certified mail, return receipt requested' a. To City, if addressed to' City of Tustin 3~ Centennial Way Tustin, California 9268~ Attention: Robert Ledendecker Director of Public Works b. To PB, if addressed to' Pacific Bell 1452 F. dinger Avenue, Room 1331 Tustin, California 9268M (714)259-4487 Attention: Paige Blouin 2.14 The provisions of the Agreement shall inure to 'the benefit of and be binding upon each of the parties and their successors and assigns. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed for and on behalf of each by their duly authorized agents, partners, municipal or corporate officers. CITY OF TUSTIN Date' Mayor ATTEST' City Clerk APPROVED 'ORM: City At ' By' Tustin Date PACIF~ Title'