PURPOSE

This resolution authorizes Burbank Water and Power to execute an amendment of the payment terms as written in the original Fiber Optic Cable Service Agreement from annual billing to quarterly billing. The term of the Agreement with ICG Telecom and ICG Holdings, Inc., a telecommunications company based in Colorado, is for a period of fifteen (15) years.

BACKGROUND

ICG Telecom and ICG Holdings, Inc. provide telecommunications services much like Pacific Bell and GTE. They represent the competition that developed over the years following the deregulation of the telephone industry. ICG Telecom and ICG Holdings, Inc. use the most modern equipment, which support a broad range of communication related services at attractive prices. The presence of such competitive suppliers encourages the development of additional telecom services at lower prices that are so important to many Burbank businesses. The City of Burbank and ICG Telecom entered into the original Fiber Optic Cable Service Agreement effective January 31, 1997. ICG Holdings was added as a party to the Agreement through a first amendment executed July 10, 1997. The subject second amendment to the Agreement changes the annual billing to quarterly billing.

FISCAL IMPACT

BWP will invoice ICG Telecom and ICG Holdings, Inc. the $155,520 annual fiber leasing fee due under the agreement, in equal quarterly installments on the first day of the first, fourth, seventh and tenth months of each year during the term of the Agreement. There is no fiscal impact associated with this amendment.

RECOMMENDATION

Staff recommends that the City Council approve this resolution, which authorizes the General Manager of Burbank Water and Power to execute the second amendment to the existing ICG Telecom and ICG Holdings, Inc. Fiber Optic Cable Service Agreement.

RED:FCF:JJC:jjc

ICG amendment 6-8-04 council memo.doc

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