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AT&T - Bill of Sale for Communications Equipment and Transfer of Conduit Copyrighted March 20, 2017 City of Dubuque Consent Items # 15. ITEM TITLE: AT&T - Sale of Communications Equipment and Transfer of Conduit SUMMARY: City Manager recommending approval of the execution of the Bill of Sale of Communications Systems and the transfer of conduit to the City of Dubuque from AT&T Corporation. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve ATTACHMENTS: Description Type Transfer of AT&T Property-MVM Memo City Manager Memo Staff Memo Staff Memo Bill of Sale Supporting Documentation Transfer of AT&T Property Map Supporting Documentation THE CITY OF Dubuque 1111-Ami.�i �ty DUB 111.► Masterpiece on the Mississippi rP PP 2007.2012.2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Transfer of AT&T Property — Bill of Sale of Communications Systems DATE: March 7, 2017 Information Services Manager Chris Kohlmann, Civil Engineer David Ness and Greater Dubuque Development Corporation Sustainable Innovations Consultant David Lyons are recommending approval of the execution of the Bill of Sale of Communications Systems and the transfer of conduit to the City of Dubuque from AT&T Corporation. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen �l MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Barry Lindahl, Senior Legal Counsel Chris Kohlmann, Information Services Manager Gus Psihoyos, City Engineer Jean Nachtman, Finance Director Randy Gehl, Public Information Officer Steve Brown, Project Manager David Ness, Civil Engineer Rick Dickinson, Greater Dubuque Development Corporation President & CEO David Lyons, Greater Dubuque Development Corporation Sustainable Innovation Consultant THE CITY OF Dubuque DUB E i'� MY II II. Masterpiece on the Mississippi 2007•2012•2013 TO: Michael C. Van Milligen, City Manager FROM: David Ness, Civil Engineer — City of Dubuque Chris Kohlmann, IS Manager — City of Dubuque David Lyons, Sustainable Innovations Consultant — Greater Dubuque Development SUBJECT: Transfer of AT&T Property — Bill of Sale of Communications Equipment DATE: March 6, 2017 INTRODUCTION The City of Dubuque has embarked upon an aggressive program to accelerate the deployment of broadband internet and data services in Dubuque. That program, focusing on public/private partnerships to reduce time and costs, has been successful in accelerating deployment of fiber, reducing City expenses and bringing new service providers and competition to the community. DISCUSSION The City recently became aware of an available asset with the potential to assist broadband expansion work. AT&T Corp contacted the City, regarding the abandonment of a conduit and fiber route running from downtown Dubuque to the City's western edge using the City right-of-way. The line was part of an older legacy installation and no longer needed within the AT&T communication portfolio The AT&T request was referred to a working group of City and Greater Dubuque Development staff who determined that the existing capacity, while limited, would be of potential significant value to the City's broadband expansion efforts. Communications with AT&T Corp were then undertaken. The result has been the attached proposed Bill of Sale of Communications Equipment which would transfer the described conduit and fiber asset to the City. The document releases AT&T from any continuing tax liability or "one call" location and notice requirements (which the City will now assume as the owner.) The Bill of Sale outlines 24,109 linear feet of conduit running from 338 W. 8t" Street to near the intersection of Pennsylvania and Radford Road, which was the limit of City's boundaries when the asset was placed in the late 1980s. A map showing the route is attached. Additional research is being conducted to identify and transfer any conduit in the right of way in newly annexed areas of the City as well as collaboration with the County as needed. Staff vision for the asset includes creating a redundant fiber connection between its downtown and western facilities, collaboration with private partners to upgrade fiber service and availability along the route and creating the first of a set of"arterial" fiber routes within the City that will provide the City, its industry, and its citizens with increasingly redundant and reliable internet connectivity. Barry Lindahl from the City Attorney's Office, Steve Brown from Engineering and Jean Nachtman from Finance have reviewed Bill of Sale documents. BUDGETIMPACT The only identified cost for the transfer of this asset to the City is the change-out of the 33 identifying "manhole/handhold" covers along the route (From AT&T to City of Dubuque). We estimate $300 dollars per manhole/handhold, meaning a total cost of $9,900. If (and when) upgrades to the system occur, it is anticipated that most costs and expenses would be undertaken by private broadband partners. To the extent that there are any other limited near term costs, such costs would be absorbed within the existing Capital Improvement budgets for fiber optic and camera expansion. Over time the City should be able to leverage this asset to reduce City costs for improved broadband connectivity and/or develop additional revenue. RECOMMENDATION Given the City's unique opportunity to leverage value within this asset, control City right- of-way and assume the asset at a very low cost we would recommend acceptance and execution of the attached Bill of Sale of Communications Equipment and approval for transfer of any additional related portions of the conduit yet to be identified that would provide similar value to the City. ACTION REQUESTED Please review the memo and attachments and let us know of any questions. We would respectfully request your approval and would ask that you forward this information to the Dubuque City Council with a recommendation for execution of the Bill of Sale of Communications Equipment and their approval for transfer of the conduit as described and further defined above. Thank you. CC: Barry Lindahl, City Attorney's Office Steve Brown, City Engineering Jean Nachtman, Finance Director 2 STATE OF IOWA § COUNTY OF DUBUQUE § BILL OF SALE OF COMMUNICATION SYSTEMS For good and valuable consideration, receipt whereof is hereby acknowledged, AT&T Corp., a New York corporation, successor in interest to AT&T Corp. (hereinafter referred to as "SELLER"), hereby sales, assigns, transfers and sets over unto the City of Dubuque, Iowa, its successors and assigns (hereinafter referred to as "BUYER") all right, title and interest of SELLER in, its out -of -service cable, conduit and manholes that occupies the BUYER'S rights of way identified in, to and in Exhibit A (annexed hereto and made a part hereof). Legal title and full ownership interest in SELLER'S Facility hereby passes by this Bill of Sale to BUYER, and SELLER shall no longer be an owner or operator of the cable, conduit and manholes. Hereafter, all responsibilities for SELLER'S Facility regarding maintenance and relocation obligations, including obligations for Iowa One Call, shall be upon BUYER or its assignees. BUYER shall indemnifyand defend SELLER for all claims, causes of action, losses, damages and /or liabilities suffered by SELLER as a result of BUYER'S failure to take any and all actions related to the purchased SELLER'S Facility as required by any federal, state, county or local law, rule or regulation. Additionally, SELLER shall no longer be subject to any existing or future right-of-way management fee related to the SELLER'S Facility. This instrument is hereby executed on the 1 k ll'day of Fc, r a ry , 2017 for the purposes set forth herein. Signed, sealed and delivered in the presence of: Witness ! I n fitness Page 1 Y AT&T CORP. By: Naive: Alvin S. Richardson Title: Sr. Technical Project Manager STATE OF GEORGIA COUNTY OF IDaKAL ES Before me, a notary public, on this day personally appeared Alvin S. Richardson, known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the foregoing document and, being by me first duly sworn, declared that the statements therein contained are true and correct, did sign the foregoing instrument by the authority of the Board of Directors of AT&T Corp.. Witness my hand and seal this i m day of I Est; r i.,,tc_- 1, 2017. tta, otar)y Public(i the State of eorgia Page 2 My Commission expires: 4 -:fib - .O fG Signed this/ day of .0 , 20 Michael' C. Van Milligen, City Manager Attest: 7 Kevin . Firnstah`I, City Clerk State of Iowa ) ) ss: County of Dubuque ) On this 1 day of r-- , !T , before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Michael C. Van Milligen and Kevin S. Firnstahl, to me personally known, who, being by me duly sworn, did say that they are the City Manager and City Clerk, respectively, of the City of Dubuque, Iowa, a municipal corporation, that the seal affixed to the foregoing instrument is the corporate seal of the corporation, and that the instrument was signed and sealed on behalf of the corporation, on the �1' day of f'\ - , ®tom , and Michael C. Van Milligen and Kevin S. Firnstahl acknowledged the execution of the instrument to be their voluntary act and deed. fon Number 719986 f _ Y Commission Expires Notary Public in and for said State EXHIBIT A CITY OF DUBUQUE PURCHASED OF AT&T'S DUBUQUE TO CENTRALIA FT "A" OUT OF SERVICE FIBER OPTIC CABLE FACILITY OCCUPYING CITY'S RIGHT OF WAY COUNTY OF DUBUQUE, STATE OF IOWA This is the information on the AT&T assets contained within the City Limits of Dubuque IA. ROUTE AND FOOTAGE: • Starting at 338 W. 8th Street going west to Bluff St. 173 LF • Turning north on Bluff Street to University Ave. 451 LF • Continuing along University to Delhi Street turning southwest. 4,144 LF • Southwest along Delhi to Grace Street. 1,225 LF • West on Grace to McCormick Street. 2,095 LF • Turning south on McCormick Street to Finley Street. 111 LF • Turning northwest on Finley Street to West Street. 246 LF • Turning southwest on West Street to Gilliam Street. 464 LF • Turning northwest on Gilliam Street to University Ave. 829 LF • Turning southwest on University Street to Van Buren Street. 512 LF • Turning west on Van Buren Street to Pennsylvania Ave. 4,027 LF • Turning west on Pennsylvania Ave to Radford Road where AT&T enters private easement. 9,832 LF Total Conduit Footage 24,109 LF CASING/CONDUITS: There are 3 Ea. 1.25" SDR 11 conduits placed in 4" Steel and 4" PVC Casing throughout the City build section. MANHOLES: There are 30 Ea. 8' X 4' X 6' Manholes in the City Limits, one of which was removed. On 9-20-1991 Manhole 28 had the top removed and filled in place, this is located at the intersection of'Embassy West Dr. and Pennsylvania Ave. This leaves a total of 29 Manholes in the route. FIBER CABLE: There is approx. 24,935 LF of 4DHX-012 Fiber remaining in the system assuming none has been removed. 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