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HomeMy WebLinkAbout2016-01-12; City Council; 22178; Adopt Resolution Authorizing the City Manager to Approve an Extension of the License Agreement Between the City of Carlsbad and Cox Communications California, LLCExtension of License Agreement with CoxCom, Inc. January 12, 2016 Page2 oj2 ENVIRONMENTAL IMPACT: Pursuant to Public Resources Code Section 21065, this action does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. EXHIBITS: 1. Resolution No. 2016-003 authorizing the City Manager to approve an extension of the License Agreement with CoxCom, Inc. 2. Ratification of Amendment No. 1 to Extend and Amend License Agreement between the City of Carlsbad and Cox Communications California, LLC, as Successor-In-Interest to CoxCom, Inc. 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2016-003 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXTEND THE LICENSE AGREEMENT BETWEEN THE CITY OF CARLSBAD AND COX COMMUNICATIONS CALIFORNIA, LLC, AS SUCCESSOR-IN-INTEREST TO COXCOM, INC. EXHIBIT 1 WHEREAS, The city is responsible for the management of the public right-of-way and performs a wide range of vital tasks necessary to preserve the physical integrity of public streets and ways to control the orderly flow of vehicles, to promote safe movement of pedestrians, and to manage a number of gas, water, sewer, electric, cable television, telephone and telecommunications facilities that are located in, under and over the streets and public right-of- ways; and WHEREAS, CoxCom, Inc. entered into a Non-Exclusive License Agreement to construct fiber based facilities in the public right-of-way in the Palomar Airport industrial area on Sept. 12, 2005;and WHEREAS, Pursuant to the terms of the original Agreement, CoxCom, Inc. was granted a five year extension in 2010, extending the Agreement through Sept. 12, 2015; and WHEREAS, Pursuant to the terms of the original Agreement, as may have been amended from time to time, CoxCom, Inc. has requested a second extension of the License Agreement through 2020; and WHEREAS, CoxCom, Inc. has fully complied with all terms and conditions of the License Agreement; and WHEREAS, The License Agreement has been beneficial for all parties involved and aided in the city's economic development efforts. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California as follows: II II II II II II II II II II II II II II II 1. That the above recitations are true and correct. 2. That the City Council does hereby authorize the City Manager to extend the License Agreement between the City of Carlsbad, and Cox Communications California, LLC as successor-in-interest to CoxCom, Inc. RATIFICATION OF AMENDMENT NO. 1 TO EXTEND AND AMEND AGREEMENT A LICENSE AGREEMENT BETWEEN THE CITY OF CARLSBAD, CA AND COX COMMUNICATIONS CALIFORNIA, LLC AS SUCCESSOR-IN-INTEREST TO COXCOM, INC. This Ratification of Amendment No. 1 is entered into as of the ltf--IA day of .b"-u~ d.Or6 but effective as of the 13 day of September, 2015, extending and amending the license agreement dated September 12, 2005 (hereinafter "Agreement") by and between the City of Carlsbad, CA, a municipal corporation, ("City"), and Cox Communications California, LLC ("COX, LLC") as successor-in-interest to COXCOM, INC. ("Cox") (collectively, the "Parties"). RECITALS A. On September 12, 2005 the Parties entered into a license agreement that allowed Cox to construct fiber-based facilities with the City's Rights-of-Way to provide services to the Palomar Airport industrial area of the City as further depicted in Exhibit A attached hereto and incorporated herein; and B. The initial term of the Agreement was for 5 years; which could be renewed for three (3) additional five year terms upon request of Cox; and C. Cox constructed said fiber-based facilities within the City's designated Public Rights-of-Way and has provided non-Cable Services within this area; and D. Cox acknowledges that the Agreement does not constitute a cable franchise and Cox understands and acknowledges that to provide Cable Services within the City of Carlsbad it would be required to have a valid franchise agreement issued by the State of California; and E. On August 27, 2010 Cox requested, pursuant to section 18(a) of the Agreement, an additional five-year extension of the Agreement; and F. On October 21, 2010 then Municipal Property Manager granted Cox's request to extend the Agreement for a second five-year term, expiring on September 12, 2015; and G. On December 31, 2011, ("Transfer Date") pursuant to Section 15 of the License Agreement, Cox transferred its interests in the License Agreement to Cox Communications California, LLC, a wholly-owned subsidiary of Cox; and H. Although not required by the Agreement, Cox did not notify City of its transfer of its interest in the Agreement to Cox, LLC; and I. On August 17, 2015 Cox, rather than Cox, LLC, requested an additional five-year extension of the Agreement to September 12, 2020, pursuant to section 18(a) of the Agreement,. J. The incorrect Cox entity was named in the extension request due to an administrative error, however, Cox is the parent of Cox, LLC, and the Parties agree that the City Attorney Approved Version 11.10.15