01-13-03

SUBJECT: FINAL READING ORDINANCE 2003-O-015

AUTHORIZING THE CITY MANAGER TO GRANT A LICENSE TO ALESTRA S. DE R.L. DE C.V., A MEXICAN CORPORATION FOR THE USE OF A TELECOMMUNICATIONS PVC CONDUIT LOCATED AT THE JUAREZ-LINCOLN INTERNATIONAL BRIDGE AND THE USE OF 47 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 JANUARY 13, 2003, AND ENDING JANUARY 12, 2008. ANNUAL RENT SHALL START AT $7,600.00 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: City Council at its December 16, 2002 meeting approved the introductory reading of this ordinance.

BACKGROUND:

On January 27, 1997, Alestra S. de R.L. de C.V. , 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 47 linear feet of city right of way. Said license expired January 26, 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 Alestra S. de R.L. de C.V. The starting rent has been increased by 25% from the last rent amount paid in the amount of $6,078.00. 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 $7,600.00 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 2003-0-015

AUTHORIZING THE CITY MANAGER TO GRANT A LICENSE TO ALESTRA S. DE R.L. DE C.V., A MEXICAN CORPORATION, FOR THE USE OF A TELECOMMUNICATIONS PVC CONDUIT LOCATED AT THE JUAREZ-LINCOLN INTERNATIONAL BRIDGE AND THE USE OF 47 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 JANUARY 13, 2003 AND ENDING JANUARY 12, 2008.

2. ANNUAL RENT SHALL START AT $7,600.00 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 Alestra S. de R.L. de C.V., a Mexican Corporation as LESSEE, for the use of a PVC conduit located at the Juarez-Lincoln International Bridge and 47 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 Alestra S. de R.. de C.V., a Mexican Corporation for the use of a PVC conduit located at the Juarez-Lincoln International Bridge and 47 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 13^th DAY OF JANUARY, 2003.

_________________________

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