COUNCIL COMMUNICATION

 

DATE:

11-04-02

 

 

 

SUBJECT:  FINAL READING OF ORDINANCE 2002-0-284

AUTHORIZING THE CITY MANAGER TO GRANT A LICENSE TO BESTEL USA, INC. FOR THE USE OF A TELECOMMUNICATIONS PVC CONDUIT LOCATED AT THE JUAREZ-LINCOLN INTERNATIONAL BRIDGE AND THE USE OF 1000 LINEAR FEET OF CITY RIGHT OF WAY FROM THE RIVER BANK TO THE 500 BLOCK OF ITURBIDE STREET, LAREDO, WEBB COUNTY, TEXAS.  LICENSE TERM IS FIVE (5) YEARS COMMENCING ON NOVEMBER 4, 2002 AND ENDING NOVEMBER 3, 2007.  ANNUAL RENT SHALL START AT $15,194.00 WITH A FIVE PERCENT (5%) INCREASE EACH ANNIVERSARY DATE PLUS $5.00 PER LINEAL FOOT PER YEAR FOR THE USE OF THE RIGHT OF WAY; PROVIDING FOR EFFECTIVE DATE.

INITIATED BY:

Larry Dovalina, City Manager

 

 

STAFF SOURCE:

Larry Dovalina, City Manager

 

PREVIOUS COUNCIL ACTION:  Introductory reading approved October 21, 2002

 

 

BACKGROUND:              

 

On April 28, 1997, Bestel USA, Inc. was granted a five year license for the use of a telecommunications PVC conduit located at the Juarez-Lincoln International Bridge and the use of 1000 linear feet of city right of way.  Said license expired April 27, 2002 and continued on a month to month basis as provided in said license.  A new license agreement has been agreed upon by the City of Laredo and Bestel USA, Inc.  The starting rent has been increased by 25% from the last rent amount paid in the amount of $12,155.00.  The right of way fee has been increased from $4.00 to $5.00 per linear foot.

 

The Telecommunications Commission at its October 9, 2002 meeting approved a recommendation to forward to City Council for final approval.

 

 

 

 

 

FINANCIAL IMPACT: The city will receive an annual rent of $15,194.00 with a 5% increase each succeeding year plus $5,000 per year for the use of the right of way.  Funds will be deposited to General Fund-Telecommunications License line item 101-0000-311-1060.

 

                                                                              

COMMITTEE RECOMMENDATION: 

The Telecommunications Commission recommends approval.

 

 

STAFF RECOMMENDATION: 

Staff concurs with the recommendation of the Telecommunications Commission.

 

 

 

 

ORDINANCE  2002-0-284

 

 

 

AUTHORIZING THE CITY MANAGER TO GRANT A LICENSE TO BESTEL, USA, INC. FOR THE USE OF A TELECOMMUNICATIONS PVC CONDUIT LOCATED AT THE JUAREZ-LINCOLN INTERNATIONAL BRIDGE AND THE USE OF 1000 LINEAR FEET OF CITY RIGHT OF WAY FROM THE RIVER BANK TO THE 500 BLOCK OF ITURBIDE STREET, LAREDO, WEBB COUNTY, TEXAS.

 

1.         LICENSE TERM IS FIVE (5) YEARS COMMENCING ON NOVEMBER 4, 2002 AND ENDING NOVEMBER 3, 2007.

2.         ANNUAL RENT SHALL START AT $15,194.00 WITH A FIVE PERCENT (5%) INCREASE EACH ANNIVERSARY DATE PLUS $5.00 PER LINEAR FOOT PER YEAR FOR THE USE OF THE RIGHT OF WAY; PROVIDING FOR EFFECTIVE DATE.

 

WHEREAS, the Telecommunications Commission recommends that the City Council approve the license between the City of Laredo, as LESSOR and Bestel USA, Inc., as LESSEE, for the use of the Telecommunications PVC conduit located at the Juarez-Lincoln International Bridge and 1000 linear feet of right of way from the river bank to the 500 block of Iturbide Street in furtherance of the development of the City of Laredo Telecommunications infrastructure.

 

WHEREAS, the Telecommunications Commission finds that said license is  in the best interest of the City of Laredo and,

 

WHEREAS, the City Council of the City of Laredo is of the same opinion.

 

NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAREDO THAT:

 

            SECTION 1.  The City Manager be and is hereby authorized to grant a license to Bestel USA, Inc., for the use of a PVC conduit located at the Juarez-Lincoln International Bridge and 1000 linear feet of right of way from the river bank to the 500 block of Iturbide Street, Laredo, Webb County, Texas, a copy of which license is attached hereto as Exhibit “A” and incorporated herein as if set out at length for all intents and purposes.

 

            SECTION 2.  This ordinance shall become effective upon the passage hereof.

 

 

 

PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR ON THIS THE 4TH DAY OF NOVEMBER, 2002.

 

 

                       

 

______________________

ELIZABETH G. FLORES

MAYOR

 

ATTEST:

 

_______________________

GUSTAVO GUEVARA, JR.

CITY SECRETARY

 

APPROVED AS TO FORM:

 

JAIME L. FLORES

CITY ATTORNEY

 

 

BY:________________________

ALLAN W. MCGRAW

ASSISTANT CITY ATTORNEY