Audit # A-89616 Prescott to Magnolia Fiber Optic Cable 20 year leaseSUPPAGR.DOC 900101
Form Approved, AVP -Law
SUPPLEMENTAL AGREEMENT
Audit No. A-89616
Folder No. 077-54
THIS SUPPLEMENTAL AGREEMENT is made as of the of "A day of --A _, 199 fo , by and
between UNION PACIFIC RAILROAD COMPANY, a Utah corporation, (hereinafter the Licensor) and CITY OF
SALINA, a municipality with a mailing address at Salina, Kansas 67401 (hereinafter the Licensee).
RECITALS:
By instrument dated June 24, 1963, the parties hereto or their predecessors in interest (if any), entered into an
agreement (herein the 'Basic Agreement") identified as Department Number CD -47349, Audit No. A-89654, covering a
water pipeline encroachment located at or near Salina, Kansas.
The parties now desire to modify the Basic Agreement by the following.
AGREEMENT:
NOW, THEREFORE, IT IS AGREED by and between the parties hereto as follows:
SECTION 1 - INDEFINITE EXTENSION OF BASIC AGREEMENT
Effective May 16, 1983, the Basic Agreement is hereby indefinitely extended and shall continue in full force and
effect until terminated as provided in the Basic Agreement.
SECTION 2 - PAYMENT OF BACK RENTAL
Effective as of May 16, 1983, the Licensee agrees to pay to the Licensor the sum of ONE THOUSAND NINE
HUNDRED THIRTY FIVE DOLLARS ($1,935.00) per annum, payable annually in advance, in lieu of the annual rental
heretofore stipulated.
The Licensee agrees to pay to the Licensor back rental for the period covering May 16, 1983 through May 16, 1996
in the sum of TWENTY FIVE THOUSAND ONE HUNDRED FIFTY FIVE DOLLARS ($25,155.00).
SECTION 3 - ELIMINATION OF ANNUAL RENTAL
Effective as of May 16, 1996, the Licensee agrees to pay to the Licensor a one-time fee in the sum of TWENTY
FIVE THOUSAND FOUR HUNDRED DOLLARS ($25,400.00) payable in advance, in lieu of the annual rental
heretofore stipulated.
Effective as of May 16, 1996, the annual rental in the Basic Agreement is hereby expunged.
If said Supplemental Agreement is terminated during the first ten (10) years, by the Licensor, its successors, or
assigns, as hereinafter provided, the Licensor shall refund to the Licensee any unearned fees on the basis on the number of
years remaining relative to the initial ten (10) year period, provided the prorated amount is greater than $1,000.00.
After the initial ten (10) year period that this Agreement is in effect, no refund of the one-time fee will be made to
the Licensee by the Licensor.
Articles of Agreement June 12, 1996
Pagel of 3
SUPPAGR.DOC 900101 Audit No. A-89616
Foran Approved, AVP -Law Folder No. 077-54
SECTION 4 - PROTECTION OF FIBER OPTIC CABLE SYSTEMS
(a) Fiber optic cable systems may be buried on the Licensor's property. Protection of the fiber optic cable systems is
of extreme importance since any break could disrupt service to users resulting in business interruption and loss of revenues
and profits. Licensee shall telephone the Licensor at 1-800-336-9193 (a 24-hour number) to determine if fiber optic cable
is buried anywhere on the Licensor's premises to be used by the Licensee. If it is, Licensee will telephone the
telecommunications company(ies) involved, arrange for a cable locator, and make arrangements for relocation or other
protection of the fiber optic cable prior to beginning any work on the Licensor's premises.
(b) In addition to other indemnity provisions of this Agreement, the Licensee shall indemnify and hold the Licensor
harmless from and against all costs, liability, and expense whatsoever (including, without limitation, attorney's fees, and court
costs and expenses) arising out of any act or omission of the Licensee, its contractor, agents and/or employees, that causes
or contributes to (1) any damage to or destruction of any telecommunications system on Licensor's property, and (2) any
injury to or death of any person employed by or on behalf of any telecommunications company, and/or its contractor, agents
or employees, on Licensor's property. Licensee shall not have or seek recourse against Licensor for any claim or cause of
action for alleged loss of profits or revenue or loss of service or other consequential damage to a telecommunication company
using Licensor's property or a customer or user of services of the fiber optic cable on Licensor's property.
SECTION 5 - TERMINATION
This Agreement may be terminated by written notice given by either party hereto to the other on any date in such
notice stated, not less, however, than thirty (30) days subsequent to the date upon which such notice shall be given.
SECTION 6 - EFFECTIVE DATE
This Supplemental Agreement shall be effective as of May 16, 1983.
ARTICLE 7- SPECIAL PROVISIONS
a.) Section 14 of the original agreement shall read: In addition to the provisions of section 11, this Agreement may
be terminated by written notice given by either party hereto to the other on any date is such notice stated, not less, however,
than six (6) months subsequent to the date upon which such notice shall be given.
SECTION 8 - AGREEMENT SUPPLEMENTAL
This agreement is supplemental to the Basic Agreement, as herein amended, and nothing herein contained shall
be construed as amending or modifying the same except as herein specifically provided.
Articles of Agreement June 12, 1996
Page 2 of 3
SUPPAGR.DOC 900101
Form Approved, AVP -Law
Audit No. A-89616
Folder No. 077-54
IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Agreement to be executed as of
the day and year first hereinabove written.
UNION PACIFIC RAILROAD COMPANY
CONTRACT REPRESENTATIVE
WITNESS:
CITY OF SALINA
II!
Articles of Agreement June 12, 1996
Page 3 of 3
RESOLUTION NUMBER 96-5022
A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE A
SUPPLEMENTAL AGREEMENT TO AMEND THE ORIGINAL BASIC AGREEMENT
DATED MAY 16, 1963, BETWEEN THE CITY OF SALINA, KANSAS AND THE
UNION PACIFIC RAILROAD COMPANY FOR PIPELINE ENCROACHMENT.
WHEREAS; due to an apparent billing oversight by both the City of
Salina, Kansas (the "City") and the Union Pacific Railroad Company (the
"Railroad") , no rental fees were billed or paid between 1983 and the present
date; and
WHEREAS; the Railroad recently structured their agreements to
provide for a one time license fee in lieu of annual renewal fees; and
WHEREAS; it is in the interest of the City to accept the lump sum
fee option instead of the annual renewals with escalator clauses; and
WHEREAS; the lump sum fee of $50,555 includes an amount ($25,155)
equal to the annual rental fee of $1,935 times the number of delinquent years
(13); and
WHEREAS; the remainder of the lump fee ($25,400) is a single
payment in lieu of future annual rental fees. SO NOW THEREFORE
Kansas:
BE IT RESOLVED by the Governing Body of the City of Salina,
Section 1. That the Mayor is hereby authorized to execute a
supplemental agreement to the original agreement dated May 16, 1963 between
the City of Salina, Kansas and Union Pacific Railroad Company for pipeline
encroachment.
Section 2. That this Resolution shall be in full force and effect
from and after its adoption.
Adopted by the Board of Commissioners and signed by the Mayor
this 24th day of June, 1996.
(SEAL)
ATTEST:
Judy D. Long, CMC, City Clerk
Evelyn Maxwell, Mayor
C
R. D. UHRICH
ASSISTANT VICE PRESIDENT
ROOM 1100, 1416 DODGE STREET
OMAHA, NEBRASKA 68179-1100
(402)271-3753
FAX (402) 271-5493
Mr. Don Huff
City of Salina
PO Box 736
Salina, KS 67402
Dear Don:
UNION PACIFIC RAILROAD COMPANY
CONTRACTS & REAL ESTATE DEPARTMENT
July 2, 1996
Folder No. 077-54
J. A. ANTHONY
DIRECTOR -CONTRACTS &
JOINT FACILITIES
D. D. BROWN
DIRECTOR -REAL ESTATE
J. L. HAWKINS
DIRECTOR -OPERATIONS SUPPORT
D. H. LIGHTWINE
DIRECTOR -REAL ESTATE
W. R. ULRICH
DIRECTOR -FACILITY MANAGEMENT
Attached is your original copy of a Supplemental Agreement, fully executed on behalf of the
Railroad Company.
The Railroad Company has authorized the installation of fiber optic cable facilities on its
property in certain areas. Prior to using the Railroad Company's property covered herein, you should
thoroughly review the terms and conditions of this document and contact the Railroad Company at
1-800-336-9193 to determine if a fiber optic cable is buried on the subject property.
distsuppAr
Sincerely Yours,
Yn Devish
Contract Representative
(402) 271-2346