HomeMy WebLinkAboutContracts & Agreements_26-74_CCv0001.pdf AGREEMENT
THIS AGREEMENT, made this 12th day of November
1974, by and between GENERAL TELEPHONE COMPANY OF CALIFORNIA,
a corporation, hereinafter called "General" , and the CITY OF
REDLANDS, a municipal corporation, hereinafter called "City" ,
and REDEVELOPMENT AGENCY OF THE CITY OF REDLANDS, a public
corporation, hereinafter called "Agency";
WITNESSETH:
WHEREAS, Agency is presently planning and constructing
redevelopment projects in the City of Redlands, State of
California, under the urban renewal project known as "Redlands
Mall Redevelopment Project; and
WHEREAS, Agency contends that it has no obligation to
- pay the costs, or any part thereof, of relocating and under-
grounding General's telephone lines and communication facilities
out of city streets that have been vacated by City or are
planned to be vacated by City at the request of Agency for the
benefit of the redevelopment project as a site clearance and
overall project cost; and
WHEREAS, City contends that it can vacate streets at the
request of Agency and over the objection of General pursuant to
state law including, but not limited to, Section 8300, et sea. ,
of the Streets and Highways Code of the State of California,
without reserving to General easements pursuant to Section 3330
and 8331 of said Streets and Highways Code, and without obligations
or liability of any kind or nature whatsoever to General; and
WHEREAS, General contends that under State law and its
tariff rules approved by and on file with the Public Utilities
Commission of the State of California, Agency is required to
compensate General for the additional cost of undergrounding
its facilities made for the benefit of a redevelopment project;
and
WHEREAS, General disputes the contentions of City and
Agency but recognizes that City and Agency are extremely anxious
to avoid any delay in said planning and construction pending
determination of the disputed issues involved and General
desires to cooperate with City and Agency in every way possible,
NOW, THEREFORE, IT IS AGREED BY AND BETWEEN EACH OF THE
PARTIES HERETO AS FOLLOWS:
1. Upon receipt of notice that City and/or Agency has
deposited into escrow the approximate sum of $12,500 in an
interest-bearing account in a national bank or savings and loan
association approved by General, General will proceed to remove,
relocate and underground its communication facilities with due
diligence and shall attempt to complete such relocation at such
time and in such manner so as not to interfere with or occasion
any delay to Agency's construction.
2. Liability between the parties for the additional cost-
of
ostof the work of underground relocation and removal perfo mr�,] ::
General, hereunder shall hereafter be determined by negotiations
of the parties hereto or, agreement failing, the same shallDc`
determined by final judgment of the court or administrative
agency of competent jurisdiction. In the event this matter Aust
be resolved in court or by administrative proceedings, agency
shall bring its action within thirty (30) days from the crate
hereof. If judicial or administrative action is not commenced
by Agency within thirty (30) days hereof, Agency shall immediately
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pay to General the additional cost of said work of underground.
relocation and removal in accordance with provisions of
Paragraph 5 hereof.
3. It is understood and agreed that the aforementioned
approximate sum of $12,500 represents the estimated additional
cost to General of the work of underground relocation and
removal of its facilities to be performed hereunder. Upon
completion of said work, General will determine its costs of
performing said additional work. Said costs shall include the
actual cost of all necessary labor, transportation, materials
and equipment, together with the usual indirect and overhead
charges attributable thereto, less the value of betterments,
if any, and the value as salvage of any material recovered.
Said costs shall be computed in accordance with General' s
regular accounting practices and General shall promptly forwar.
a statement thereof to Agency. Agency shall have reasonaizle
access to the books and records of General pertaining; to sa:i,l
computed costs for the purpose of auditing General' s statement
thereof if it desires to do so. If said computed costs exceed
the aforesaid approximate sum of $12,500, it is agreed City
and/or Agency will add the difference to the deposit in escrow
within thirty days of receipt of said statement. if said
computed cost is less than $12,500, General agrees to consent
to City's and/or Agency's drawing out of the deposit in escro,:
o- the difference between the amount deposited and the computed
costs. Said deposit, however, is not to be construes as an
admission of or stipulation to either liability or the amount
of damages if a court proceeding results.
4. Neither anything herein nor the performance of any
work by General hereunder shall be deemed an admission or waiver
of any existing rights of the respective parties and, in
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particular, any rights or claims General may have for
reimbursement in whole or in part for its costs of underground i
relocation and removal, and City, Agency and General shall
each have the same rights and claims against the other as each
would have had if General refused to perform said work until
compelled to do so by court order or judgment and in accordance
with the terms thereof.
5. If it should be determined by agreement or judgment
that City and/or Agency is obligated to reimburse General for
the additional cost of performing the work of underground
relocation and removal as provided for herein, City and/or
Agency shall promptly pay to General from either the funds ani'',
the interest accrued thereon on deposit as hereinabove provira{Ja
or any other funds then available to city and/or Agency suc:-.
amount as it has been determined is the obligation of City
and/or Agency and accrued interest thereon at the same rate o
interest as obtained on the bank deposit as provided for here-
inabove. In the event it is determined by either negotiation
or litigation that neither city nor Agency is obligated to
reimburse General for any of such costs, the provisions of t;i--
agreement which require deposit in escrow and maintenance o
the approximate sum of $12,500 in an interest-bearing account
shall become null and void and City and/or Agency shall have
the right to withdraw all of the amount on deposit in such
account, including any accrued interest thereon. Notw-Lthsta -
the outcome of such litigation as referred to above, each , ,.
shall bear its respective attorneys" fees and court costs.
6. General shall occupy public streets within the
Redlands Nall Redevelopment Project with its relocated uncer-
ground facilities under the same rights and conditions that
occupies streets generally within the City of Redlands in
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accordance with Section 7901 of the California Public t7tilities
code.
7. This agreement shall bind the successors in interest
of the parties hereto.
CITY OF REDLANDS, a municipal.
Attest: corporation
ByjL'I L
City ClerkMayor
REDEVELOPMENT AGENCY OF THE
CITY OF REDLANDS 7
By: .ice'; ' ✓�.,�. ,._ _ f
�r Chairman V
GENERAL T fEF ONE COQ ' iA7Y,
a co ati.� /1
By: /f; �1
Approved as to form:
1 - '
Agenc ounsel
City Attl<f
ey
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