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HomeMy WebLinkAbout5.620 Original Contract FIBER OPTIC WAN USE AGREEMENT This Fiber Optic Wide Area Network or WAN Use Agreement ("Agreement") is made this 2,,=1-1k- day of AUiiJ'~ ,2002, by and between NORTHLAND CABLE TELEVISION, INC., a Washington c rporatlOn ("Northland") and the CITY OF PORT ANGELES, a municipality governed under the laws of the State of Washington ("City"). Background 1. The United States Congress enacted the Telecommunications Act of 1996 to promote competition and reduce regulation in order to secure lower prices and higher quality services for American telecommunications consumers and to encourage the rapid deployment of new telecommunications technologies. 2. The Washington State Legislature enacted Chapter 35.99 RCW to encourage the use of City rights-of-way by telecommunications and cable television service providers and also enacted RCW 35.21.703 to authorize cities to engage in economic development programs. 3. This agreement has been negotiated by the City of Port Angeles in order to secure lower prices for and higher quality of telecommunications services, specifically in the form of access to high speed fiber optic or broadband services, through the use of City rights-of-way, and in order to promote economic development. 4. Northland is the cable television operator serving the City of Port Angeles, Clallam County, Washington, and nearby areas. The City desires to acquire an exclusive right to activate and use a certain portion of the dark fiber optic filaments (which have been or will be constructed by Northland) to establish a fiber optic wide area network (the portion of such dark fiber optic filaments set aside for the exclusive use of the City being the "Fiber Link") for use in providing telecommunications services to public institutions and businesses but not to the general public. 5. Northland's construction of the Fiber Link is part of an approximately $2,700,000 fiber optic and system upgrade project being constructed by Northland for its own commercial purposes as part of its cable system. 6. The City is desirous of expediting I-Net Services for its own use as well as for other public institutions and businesses in Port Angeles in advance of the scheduled deadline in Cable Television Franchise Ordinance No. 3116 ("Franchise") of February 27, 2004, at which time a dark fiber institutional network ("I-Net") for use by the City and service providers will be completed by Northland. 7. The expedited I-Net services provided under this WAN Use Agreement will provide the City with the exclusive right to activate and use a certain portion of the dark fiber optic filaments, which includes use of two existing dark fiber optic filaments that are within Page 1 Northland's cable sheath and partial use of the space within six nodes for electronic equipment to activate the network. 8. The City is acquiring the WAN use rights under this Agreement at or below fair market rates (approximately $19,000 per month for the Initial Term, which expires in April of 2004, or a not to exceed total amount of$336,000). 9. Contributing to the lower rate that the City is paying for the WAN use rights under this Agreement is the fact that Northland's cable television business allows it to recover the cost it is paying the City for the use of City rights of way pursuant to the Franchise. 10. The WAN use rights that the City is acquiring under this Agreement will be followed by the acquisition of the right to use a more extensive institutional network during the extended Franchise term, which network will be constructed by Northland as a condition of Cable Television Franchise Ordinance No. 3116, for which Northland will receive additional compensation (approximately $105,000) and an extended Franchise term. 11. The City has negotiated an Institutional Network Services Agreement with Capacity Provisioning, Inc. (C.P.I.), which the City intends to enter into following the execution of this WAN Use Agreement with Northland. Under the terms ofthe Institutional Network Services Agreement, the City will assign its WAN Use rights to C.P.I., and C.P.I. will provide Institutional Network Services consisting of wide area networking, broadband Internet access, voice over Internet protocol, local area network and other broadband telecommunications services, and necessary infrastructure and equipment, for non-commercial use by the City. Agreements Northland and the City hereby agree as follows: 1. Design and Construction ofthe Fiber Link. 1.1 Northland shall construct a node-to-node wide area network using dark fiber optic transmission filaments to connect the nodes identified in Exhibits A and C. Northland shall have no responsibility to construct any portion of the Fiber Link from the nodes to any public institutions or businesses. Northland shall have no responsibility to activate any of the dark fibers constituting the Fiber Link. 1.2 Design and Performance Characteristics. Design services for the Fiber Link have been and shall be performed by Northland and by qualified engineers and other professionals selected by Northland in its sole and absolute discretion. The specific design, including but not limited to the specific dark fibers designated for the City's exclusive use, and performance characteristics of the Fiber Link are set forth in Exhibits A and C. The drawings, designs, blueprints and other documents annexed to this Agreement or otherwise provided or furnished to the City in connection with the subject matter of this Agreement are copyrighted materials containing proprietary and confidential material owned by Northland and shall not become the property of nor be used or disclosed by the City or any person or entity employed by Page 2 or affiliated with the City, whether or not the Fiber Link is completed, except with the prior written consent of Northland, which consent may not be withheld when, but solely to the extent, legally required to be disclosed pursuant to Chapter 42.17 RCW. Submission or distribution of the drawings, designs, blueprints, specifications and other documents annexed to this Agreement or otherwise furnished to the City in connection with the subject matter of this Agreement to meet regulatory requirements or for other purposes necessary or convenient to the construction of the Fiber Link shall not be construed as publication, disclosure or use in derogation of Northland's common law copyright or other reserved rights. 1.3 Construction Activities. The construction of the Fiber Link and nodes shall be performed by Northland and/or by qualified construction contractors and suppliers selected by Northland in its sole and absolute discretion; provided, however, Northland shall have no responsibility to perform or have performed any construction-related activities from the nodes to buildings or within the buildings or any appurtenances thereto. The City shall be responsible for all construction-related activities from the nodes to buildings and within the buildings or any appurtenances thereto, including but not limited to the installation of any conduit described in Exhibit A. Construction specifications not otherwise set forth in Exhibit A shall be governed by the requirements set forth in either the latest edition of the National Electric Safety Code or the local electrical regulations, whichever is more stringent. 1.4 Construction Permits and Other Authorizations. Commencing on the mutual execution of this Agreement, Northland shall use its commercially reasonable efforts to obtain all necessary permits, licenses or similar grants of authority to construct the Fiber Link and nodes. Northland shall submit plans and specifications on or before the effective date of this Agreement for City approval in accordance with Cable Television Franchise Ordinance No. 3116 ("Franchise"). The City shall cooperate and use its commercially reasonable efforts to assist Northland in filing the appropriate documentation required to obtain any permits, licenses or similar grants of authority needed to construct the Fiber Link and nodes. - --- --1.5 - Completion of Construction. - - Northland shall use its commercially reasonable efforts to complete the construction of the Fiber Link and nodes on or before October 21, 2002, after obtaining all necessary permits, licenses or similar grants of authority to construct the Fiber Link and nodes. The City shall promptly conduct a final inspection to verifY completion of construction. 1.6 Testing and Acceptance of Completed Fiber Link and Nodes. Upon Northland's completion of the construction of the Fiber Link and nodes, within seven (7) days Northland shall in accordance with the testing procedures set forth in Exhibit B, test or have tested the Fiber Link and nodes to demonstrate that the Fiber Link performs in accordance with the specifications set forth in Exhibit B or as otherwise agreed by the parties. Upon City verification of completion of construction and testing by Northland, the City will issue formal written acceptance of the Fiber Link and nodes, which acceptance shall not be unreasonably withheld or delayed, and make payment in accordance with Subsection 3.1 (2). Page 3 1.7 City Exercise of Institutional Network Fiber Option. In accordance with Subsection 8.1.2.(1) of the Franchise, the City exercises its option to include a minimum of 24 single-mode fibers in the institutional network backbone. 1.8 Use of Fiber. The City or its assigned entity may use the Fiber Link and nodes for non-commercial and commercial purposes other than Cable Services as defined by the Franchise provided that any commercial use shall be limited to businesses and shall not be available to the general public. 1.9 Obligations under Franchise. By entering into this Agreement, Northland will not fully satisfy Section 4.2 - Term and Section 8 - Institutional Network of the Franchise and will not obtain a Franchise term of fifteen (15) years until such Franchise requirements are fully satisfied. 1.10 Node Quantity and Locations. The Node enclosure quantities and locations specified under this Agreement have been agreed by the parties to be acceptable substitutes to the Node enclosure quantities and locations specified in Section 8 and Exhibits B and C of the Franchise. 1.11 Node Space. The City has a right to use space within each node enclosure equivalent to a maximum of fifty one (51) rack-units through May 31,2017 at no additional or continuing cost to the City. 1.12 I-Net Cost. The manner in which the City pays Northland to construct and interconnect the Fiber Link and nodes under Section 3.1(1-2) of this Agreement has been agreed upon by the parties to be an acceptable substitute to Subsection 8.11.2(1-2) - I-Net Cost of the Franchise. 2. Grant of License. Northland hereby grants the City an exclusive, assignable license to use the Fiber Link and nodes, as identified in Exhibits A and C, during the Initial Term and the Extended Term, if any, of this Agreement. Nothing herein shall be deemed or construed to prevent Northland from entering into similar agreements with other parties with respect to the use of fiber optic filaments and nodes or other distribution facilities that are not the subject of this Agreement. The City may assign, or otherwise allow use of the License under this Agreement to Capacity Provisioning, Inc. or to any other person or entity provided that such person or entity agrees to be bound by the terms hereof and that no assignment or grant of any rights to any third party by the City hereunder shall release the City from any of its duties or obligations under this Agreement. In the event that the City assigns or otherwise allows use of the License under this Agreement, the City's assigned entity may, if so designated by the City, serve as a single point-of-contact to Northland for all activities relating to this Agreement. 3. Compensation. As partial consideration for Northland's performance and the City's WAN use rights hereunder, the City shall make the following payments to Northland. Page 4 3.1 Institutional Network Payment. As provided in Subsection 1.6, the City shaH reimburse to Northland costs not to exceed $208,000.00 to construct and interconnect the Fiber Link and nodes in exchange for the City's right of use under this Agreement and in addition, the City will pay Northland a project management fee not to exceed $37,000.00 or 20% of cost. The total payment of $245,000.00 shall be deducted from the City's cost of the Institutional Network as specified in Subsection 8.11 of the Franchise. Furthermore, as added incentive to accelerate the completion of this phase of the Institutional Network the City agrees to pay Northland an additional project management fee of$55,000.00. In addition, the City has established a contingency for expenses that are approved by the City in an amount not to exceed ten percent (10%) of the total Fiber Link and node costs. Any payment for contingent expenses shall be deducted from the City's cost of the Institutional Network as specified in Subsection 8.11 of the Franchise. The City's cost to construct and interconnect the Fiber Link and nodes shall be verified by the City and payments shall be made by the City after the City approves Northland's plans and specifications in accordance with Section 1.4 within fourteen (14) days of Grantee's request for payment as follows: (1) Payments including reimbursements of costs and pro rata project management fees upon City receipt of Grantee's request for payment containing all appropriate and complete inVOIces. (2) Final payment representing payment of the $55,000 additional project management fee following formal City acceptance of the "Initial Proof of Performance" described in subsection 1.6 herein, upon City's receipt of Grantee's request for payment containing all appropriate and complete invoices and City's receipt of acceptable proof that Northland has paid all project costs for labor and supplies and all state taxes imposed pursuant to Title 82 RCW. In the event Northland fails to complete the Fiber Link and nodes as specified in Subsection 1.6, Northland shall refund to the City all payments made to Northland by the City pursuant to this Subsection 3.1. 3.2 Monthly Payments. Commencing with the acceptance of the Initial Proof of Performance as set forth in Subsection 1.6 and Exhibit B herein, the City shall prepay to Northland a prorated amount of one thousand four hundred dollars ($1,400.00) (equal to seven hundred dollars and no cents ($700.00), for each terminated fiber, with a total of two (2) total fibers to be provided), if any for the first month, and the full amount of one thousand four hundred dollars (1,400.00) per month, through December 31, 2002. Commencing January 1, 2003 through December 31, 2003 the City shall pay to Northland the monthly sum of nineteen hundred dollars ($1 ,900.00) (equal to nine hundred and fifty Dollars ($950.00) for each terminated fiber, with a total of two (2) total fibers to be provided). Commencing January 1, 2004 through the last month of the Initial Term of this Agreement, the City shall pay to Northland the monthly sum of two thousand four hundred dollars ($2,400.00) (equal to one Page 5 thousand two hundred dollars ($1,200.00) for each terminated fiber, with a total of two (2) total fibers to be provided). Commencing with the commencement of the Extended Term (defined below), if any, and continuing each month during the Extended Term, if any, the City shall pay to Northland the monthly sum equal to the amount negotiated by the parties. Except for the institutional network payment and the 2002 monthly payments, which shall be paid by the City as specified in Subsection 3.1 and 3.2 respectively, the City shall pay to Northland the above-stated amount, in advance, on or before the fifteenth (15th) day of each month during the Initial Term and the Extended Term, if any, of this Agreement. The City shall mail or otherwise deliver its monthly payments to Northland at the address specified in Section 26 or to such other address as Northland may specifY in writing. Any amounts not paid as set forth above shall be subject to a late payment charge of ten percent (10%) of the amount then owing. Charges for electrical power consumption shall be in accordance with Section 12. The City's payment of monthly payments shall be contingent on Northland's performance of its obligations under this Agreement. 3.3 Excess Costs and Fees. The monthly payments described in Section 3.2 do not include any sales taxes, use taxes, rental taxes, gross receipt taxes, federal, state or local regulatory assessment fees, federal, state or local excise taxes, or any other taxes, fees, assessments, charges or levies which may be imposed by federal, state or local governments, or agencies thereof, with respect to this Agreement or the subject matter thereof (collectively, the "Taxes"). In the event that Northland, as a direct or indirect consequence of the exclusive use of the Fiber Link granted to the City as contemplated by this Agreement, incurs (i) Taxes, or (ii) any costs, fees or expenses associated with utility pole attachment or utility conduit use, which are in excess of the charges paid by Northland prior to the date of this Agreement and which are attributable to the Fiber Link or any services provided thereon, or, in the event that future legislative and/or xegulatory proceedings affect Northland's obligations pursuant to this Agreement, such costs will be passed on to the City and shall, in Northland's discretion, be added to the monthly payment provided in Section 3.2 upon written notice to the City or shall be paid by the City within 30 days of Northland's billing therefore. In accordance with the Franchise, franchise fees shall not be imposed upon or collected from Northland by the City as a result or consequence ofthis Agreement. 4. Term of Agreement. This Agreement shall commence as of the date first written above and shall continue until April 27, 2004 (the "Initial Term"); provided, however, the City may, on or before February 1, 2004 request an extension to this Agreement. Upon Northland's approval of the City's extension request (the "Extended Term"), the parties will be bound to the same terms and conditions as set forth herein (other than the pricing which may be negotiated by the parties subject to the terms hereof). Upon completion of the institutional network in accordance with the Franchise, on or before February 27, 2004, Northland shall provide the City or to any other person or entity assigned by Page 6 the City the first right of refusal to use two (2) of Northland's reserve fibers, which are not otherwise subject to the City's or its assignee's exclusive use, pursuant to the Franchise and this Agreement, for commercial purposes other than Cable Services. In the event that Northland fails to complete the institutional network in accordance with the Franchise by February 27,2004, at the option of the City or its assignee, which shall be provided to Northland in writing no later than February 27, 2004 and annually thereafter through May 31,2017, Northland shall continue to be bound to the same terms and conditions as set forth herein at no additional or continuing cost to the City until Northland has completed the institutional network in accordance with the Franchise. To the extent the Fiber Link and Node infrastructure provided under this Agreement is still in use and needed by the City beyond the date on which Northland has completed the institutional network in accordance with the Franchise, continued use of the Fiber Link and Node infrastructure under the same terms and conditions as set forth herein (subject to pricing which shall be negotiated by the parties subject to the terms hereof) shall be allowed. 5. Representations and Warranties. The following representations, warranties and covenants are material inducements for the parties to enter into this Agreement. 5. I The City and its assigned entity shall not use the Fiber Link in violation of any applicable federal, state or local law, regulation, ordinance, franchise, or in violation of any applicable court order. The City and its assigned entity shall not use the Fiber Link in violation of the Franchise. 5.2. None of the facilities of the City or its users or anyone acting on its behalf or pursuant to its authority shall interfere with the operational integrity of Northland's television cable system. 5.3 Northland is a corporation in good standing and has the corporate power and authority to enter into and perform this Agreement. Northland shall maintain the Fiber Link and nodes, which shall be fully caQable of operation, beginning from the date the City formally accepts the Fiber Link and nodes and continuing through the term of this Agreement. 5.4 The City is a Washington municipality and has the power and authority to enter into and perform this Agreement. 5.5 The City or its assigned entity may use the Fiber Link and nodes for non- commercial and commercial purposes other than Cable Services as defined by the Franchise. 5.6 Northland shall warrant the Fiber Link and nodes for a period of one year following formal City acceptance and be responsible to promptly correct, at its own expense, all defects and errors in materials and/or construction that may arise during the warranty period. 6. Indemnification. Page 7 6.1 In addition to its indemnification obligations found elsewhere in this Agreement, the City and its assigned entity, if any, shall jointly and severally, defend, indemnify, protect and hold Northland and its officers, directors and employees harmless from and against any and all claims, demands, actions, judgments, costs (including without limitation reasonable attorneys' and experts' fees), losses, expenses and liabilities of every kind or nature whatsoever which may arise in connection with or result, directly or indirectly, from (i) the City's or its assignee's use of the Fiber Link, (ii) the management or conduct of the City's or its assignee's activities, or (iii) any breach of or default in the terms, conditions, restrictions, representations, warranties or covenants agreed to or made by the City contained in this Agreement. 6.2 Northland shall defend, indemnify, protect and hold the City, its successors, assigns, officers, employees and elected officials harmless from and against any and all claims, demands, actions, judgments, costs (including without limitation reasonable attorneys' and experts' fees), losses, expenses and liabilities of every kind or nature whatsoever which may arise in connection with or result, directly or indirectly, from (i) the construction of the Fiber Link and nodes as provided in this Agreement or (ii) any breach of or default in the terms, conditions, restrictions, representations, warranties or covenants agreed to or made by Northland contained in this Agreement. 7. Node Access. 7.1 Northland shall provide to the City or its assigned entity access to the nodes for the purpose of connecting site drops, testing and inspection. The City or its assigned entity shall comply with Northland's node access policies and procedures. 7.2 The City or its assigned entity shall provide to Northland reasonable access to any oftheir facilities for the purpose of testing, inspection and maintenance of the Fiber Link. 8. Ownership of the F/O Filaments and Nodes; Taxes. Subject only to the rights granted hereunder to the City, all of the fiber optic filaments and nodes in Northland's cable system, including without limitation that portion that constitutes the Fiber Link, shall be owned by Northland and shall not be merged or otherwise annexed to any real or personal property connected thereto. The City or its assigned entity shall have no right to pledge, mortgage or otherwise permit a security interest or lien to attach to the Fiber Link or any part of Northland's cable television system. The City or its assigned entity shall indemnify, defend, and hold Northland harmless from and against any and all claims, demands and costs (including reasonable attorney fees) liabilities, causes of action or judgments arising out of or in any way related to any security interest, lien, encumbrance or legal process against the Fiber Link arising from any action or omission of the City or its assigned entity or asserted by any creditor of the City, or otherwise arising out of the use granted to the City or its assigned entity. Each party shall be responsible for all property taxes imposed on its property. Page 8 9. Insurance. Northland and the City or its assignee agree that they will obtain and maintain sufficient insurance coverage, or self-insurance, to adequately protect their respective interest in the Fiber Link. 10. Early Termination ofthis Agreement. 10.1 Northland and the City or its assignee reserve the right to terminate this Agreement at any time upon breach by the other party of a material term or condition of this Agreement; provided that the non-breaching party has first given 60 days written notice specifying in reasonable detail the alleged breach or failure of compliance and demanding the cure of the breach. If said breach or failure to comply cannot reasonably be cured in 60 days, and the breaching party shall proceed promptly to cure the same with due diligence, the time for curing such failure to comply shall be extended for such period of time as may be reasonably necessary to complete such cure. 10.2 Without limiting the foregoing, Northland may terminate this Agreement at any time on 60 days prior written notice to the City or its assignee if any of the following events have occurred: 10.2.1 Northland's pole attachment and/or conduit use rights are terminated or expire and are not renewed, or become subject to conditions or restrictions such that continuation of this Agreement or the City's or its assignee's continued use of the Fiber Link and nodes as provided herein would be in violation of such conditions or restrictions. 10.2.2 Northland's franchise to provide cable television service or any easements, rights-of-way or other similar authorizations are terminated or expire and are not renewed, or become subject to conditions or restrictions such that continuation of this Agreement or the City's or its assignee's continued use of the Fiber Link and nodes would be in violation of such conditions or restrictions. 10.2.3 The City or its assigned entity uses the Fiber Link in violation of Cable Television Ordinance No. 3116, any applicable federal, state or local law, statute, regulation, ordinance, code or other legal requirement. 10.2.4 The City or its assigned entity uses the Fiber Link in violation of any applicable final order of any court or regulatory authority of competent jurisdiction. 10.2.5 Nothing in Subsections 10.2.3 or 10.2.4 shall be deemed to prevent the City from appealing the validity of any such legal requirement or order. If appeals procedures permit, the City or its assignee shall have the right to seek a stay in the enforcement of the legal requirement or order and to continue to use the Fiber Link during the appeals process. 10.3 Without limiting the foregoing, the City or its assignee may terminate this Agreement after December 31, 2002 upon 60 days prior written notice to Northland if any of the following events have occurred: Page 9 10.3.1 The City or its assigned entity discontinues the use of the Fiber Link and nodes. 10.3.2 The City's assigned entity discontinues performance of its contractural obligations to the City. 10.4 In the event of termination of this Agreement in accordance with this Section 10 after completion of construction in accordance with Subsection 1.5 or expiration of this Agreement, the monthly fee specified at Subsection 3.2 shall terminate, but no portion of the Institutional Network Payment or monthly payments specified at Section 3 shall be refunded except as specified in Subsection 3.1. 11. Limitation ofLiabilitv; Disclaimer of Representations and Warranties. 11.1 NORTHLAND SHALL NOT BE RESPONSIBLE OR LIABLE IN ANY WAY FOR THE CONTENT OF THE DATA OR FOR THE LOSS OF ANY DATA CARRIED OR TRANSMITTED OVER THE FIBER LINK OR FROM ANY INTERRUPTION OF SERVICE, INCLUDING BUT NOT LIMITED TO ANY DOWNTIME OF THE CITY'S OR ITS ASSIGNED ENTITY'S OPERATIONS, NOR SHALL NORTHLAND BE RESPONSIBLE OR LIABLE IN ANY WAY FOR ANY CONSEQUENTIAL, INCIDENTAL, PUNITIVE, OR SPECIAL DAMAGES (INCLUDING, WITHOUT LIMITATION, LOST PROFITS, LOST REVENUES, LOST INCOME OR LOST COST SAVINGS) INCURRED BY THE CITY OR ITS ASSIGNED ENTITY AS A RESULT OF ANY INTERRUPTION OF SERVICE OR BREACH OR PARTIAL BREACH OF THIS AGREEMENT OR ARISING OUT OF ANY ACT OR OMISSION BY NORTHLAND OR ITS AFFILIATES, SUCCESSORS AND ASSIGNS, OR ITS OR THEIR EMPLOYEES, SERV ANTS AND/OR AGENTS OR OTHERWISE ARISING UNDER THIS AGREEMENT. THE FOREGOING SHALL APPLY EVEN IF NORTHLAND HAS BEEN ADVISED uOF- THE POSSIBILITY OF ANY SUCH DAMAGES. 11.2 EXCEPT AS EXPRESSLY SET FORTH HEREIN, NORTHLAND HEREBY DISCLAIMS ANY AND ALL REPRESENT A TIONS AND WARRANTIES, EXPRESS OR IMPLIED. 12. Electrical Power. The City shall be solely responsible for paying all electrical power consumption charges, if any, at each node location where the City or its assignee is the only party that has active network equipment. The City shall also be responsible for paying all electrical power consumption charges, if any, at each node location that is used by the City or its assignee and/or other service providers. The City reserves the right to charge its assignee and/or other service providers, on a pro rata basis to be determined by the City, for electrical power consumption at each node location that has active network equipment in use by its assignee and/or other service providers. Northland shall provide the City a copy of each fiber optic wide Page I 0 area network use agreements it executes with other parties that will have active network equipment within a node enclosure provided under this Agreement. 13. Maintenance and Repair of the Fiber Link. Subject only to Force Majeure Events, Northland will perform maintenance and repair of the Fiber Link in accordance with the standards set forth in Exhibit A, or as otherwise mutually agreed in writing, throughout the Initial Term and the Extended Term, if any, of this Agreement; provided, however, the City shall promptly remit payment to Northland, within 30 days of Northland's billing therefore, at Northland's then-existing applicable rates for materials (including, among other things, fiber and fiber splices) and labor (including any applicable overtime), for maintenance or repair resulting from the City's, its assigned entity's, its employees', and agents' negligence or intentional misconduct or repair resulting from any Catastrophic Break. As used herein, a "Catastrophic Break" shall be any cut in the Fiber Link, however caused or severe, resulting in a disruption of service within the Fiber Link. The City shall provide written notice to Northland of any operational problems with the Fiber Link and will cooperate with Northland to effect any needed repaIrs. 14. Force Majeure. No party to this Agreement shall be considered in default in the performance of any of its obligations hereunder to the extent that the performance of such obligations, except the payment of money, is prevented or delayed by any cause beyond the reasonable control of the affected party, including, but not limited to, acts of God, acts ofa public enemy, terrorists, war, riots, epidemics, earthquakes, fires, storms, hurricanes, blizzards, and other inclement weather, washouts, sinkholes, civic disturbances, explosions, strikes, lockouts, union jurisdictional disputes, inability to obtain or maintain permits or rights-of-way, inability after reasonable effort in the exercise of due diligence to obtain parts or materials or equipment, actions of utilities (not to be construed to include the parties), and any other cause (except inability to make monetary payments or obtain financing) not within the reasonable control ofthe parties (any such event being hereinafter refer~ed to a "Force Majeure Event"). Each party to this Agreement shall give notice promptly to the other of the nature and extent of any event of Force Majeure Event claimed to delay or prevent its performance under this Agreement. 15. Severability. The invalidity under applicable law of any provision of this Agreement shall not affect the validity of any other provision of this Agreement, and in the event that any provision hereof is determined to be invalid or otherwise illegal, this Agreement shall remain effective and shall be construed in accordance with its terms as if the invalid or illegal provision were not contained herein. 16. Waiver. No modification, amendment or waiver of or with respect to any provision of this Agreement, nor consent by either party to the breach of or departure from any of the terms and conditions hereof, shall in any event be effective or binding against such party unless it shall be in writing and signed by such party, and then such waiver or consent shall be effective only in the specific instance and for the particular purpose for which given. Neither any failure nor delay by either party in exercising any right, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise thereof preclude any future or further exercise thereof or the exercise of any other right, power or privilege. Page 11 17. Captions and Headings. The captions and headings are inserted in this Agreement for convenience only and shall in no event be deemed to define, limit, or describe the scope or intent of this Agreement, or of any provision hereof, nor in any way affect the interpretation of this Agreement. 18. No Inference Against Author. No provision of this Agreement shall be interpreted against any party because such party or its legal representative drafted such provision. 19. Legal Expenses. If any proceeding is brought by either party to enforce or interpret any term or provision of this Agreement, the substantially prevailing party in such proceeding shall be entitled to recover, in addition to all other relief as set forth in this Agreement, such party's reasonable attorneys' and experts' fees and expenses. 20. Exhibits. Each of the Exhibits listed below shall be incorporated into and shall for all purposes be deemed a part of this Agreement: Exhibit A Exhibit B Exhibit C -- Design and Performance Characteristics -- Testing Procedure -- Node Location Map Any of such Exhibits may be later amended or revised by the mutual consent of the parties and such Exhibit, as so amended or revised, shall be incorporated into and shall for all purposes be deemed a part of this Agreement. 21. Counterparts. This Agreement may be executed in one or more counterparts, all of which taken together shall constitute one instrument. 22. Survival of Representations and Obligations. Sections 3.1, 6, and 11 shall survive termination or_ expiration of this Agreement, together__ with__any accrued but unpaid payment obligations which arose prior to such termination or expiration. 23. Further Assurances. At any time and from time to time, upon the request of one party, the other party shall execute, deliver and acknowledge or cause to be executed, delivered and acknowledged, such further agreements, documents, and instruments and to do such other acts and things as the requesting party may reasonably request in order to fully effect the intent of this Agreement. 24. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous written or oral agreements and representations between the parties with respect thereto. 25. Relationship of the Parties. Nothing herein shall be deemed or construed to create or constitute a partnership, joint venture or agency relationship between the parties, and neither Page 12 party is authorized to hold itself out or to act toward third parties or the public in any manner that would indicate the existence of any such relationship with the other. 26. Assignment. This Agreement, license, and the rights and obligations of the City hereunder may be assigned to Capacity Provisioning, Inc. or to any other person or entity provided, however, that prior to any such assignment by the City, the City shall provide Northland with a copy of the agreement, executed by the City and the potential assignee, whereby the potential assignee agrees to assume all of the obligations of the City herein, as of the date of such assignment. Northland shall have the right to assign and delegate this Agreement and its rights and obligations hereunder, in whole or in part, from time to time for any purpose; provided, however, that prior to any sale by Northland of the Fiber Link and nodes, Northland shall provide the City with a copy of the agreement, executed by Northland and the potential buyer of the Fiber Link and nodes, whereby Northland agrees to assign all of its rights herein and such potential buyer of the Fiber Link and nodes agrees to assume all of the obligations herein, as of closing date of any such sale. 27. Notices. All notices required to be in writing hereunder shall be deemed given when personally delivered, or if mailed by certified or registered mail, three (3) days following deposit in the United States mail, postage prepaid, or ifvia telecopy or facsimile, when received, or if sent by courier service providing evidence of delivery, when actually delivered by such service, and sent to the following: with a copy to: City of Port Angeles P.O Box 1150 Port Angeles, W A Glenn Cutler, P.E. Phone: (360) 417-4800 Facsimile: (360) 417-4709 Northland Cable Television, Inc. -1201 Third Avenue, Suite 3600 Seattle, W A 98101 Attention: Legal Department Phone: (206) 621-1351 Facsimile: (206) 623-9015 Northland Cable Television 725 East First Street Port Angeles, W A 98362 Attn.: System Manager Phone: (360) 452-8466 Fax: (360) 457-5901 If to the City: If to Northland: Either party may change its designated address for notification by sending notice of such change in the manner provided above. Page 13 IN WITNESS WHEREOF, the authorized representatives of the parties have executed this Agreement as of the date first set forth above. THE CITY NORTHLAND CITY OF PORT ANGELES ~--' Its /ll/fr c)/(. NORTHLAND CABLE TELEVISION, INe. By ~c1 J? c/a-k- Richard 1. Clark, Executive Vice President ~ Page 14 EXHIBIT A This is Exhibit A to that certain Fiber Optic WAN Use Agreement made on the _ day of , 2002 (the "Agreement"), by and between NORTHLAND CABLE TELEVISION, INC., a Washington corporation (herein "Northland") and the CITY OF PORT ANGELES, a municipality governed under the laws of the State of Washington (herein, the "City"). Design and Performance Characteristics I. Fiber Link Description - The Fiber Link will be designed and constructed as a wide area network connecting nodes by the following number of dark fibers. Any changes to node locations shall be mutually agreed upon in writing, and such changes shall satisfY the node location provisions of the Franchise. The City shall grant right-of-way easements to Northland to construct nodes on City property. Northland shall be responsible for obtaining all other required easements, if any, to construct nodes on private property. . Two (2) single mode dark fibers originating at the Clallam County Public Utility District interconnection, to the Washington Street Substation node, identified in Exhibit C; . Two (2) single mode dark fibers originating at the Clallam County Public Utility District splice case, to a splice case located at 3rd Street and Golf Course Road, identified in Exhibit C; . Two (2) single mode dark fibers originating at the Washington Street Substation node, to the William Shore Memorial Pool node, identified in Exhibit C; . Two (2) single mode dark fibers originating at the William Shore Memorial Pool node, to the Valley Substation node, identified in Exhibit C; . Two (2) single mode dark fibers originating at the Washington Street Substation node, to the Laurel Substation node, identified in Exhibit C; . Two (2) single mode dark fibers originating at the Laurel Substation node, to the Corp Yard node, identified in Exhibit C; . Two (2) single mode dark fibers originating at the Corp Yard node, to the 16th and I Street node, identified in Exhibit C; 2. The demarcation points will be each node, unless an alternate demarcation point is mutually agreed to in advance of construction. Unless a different connector type is agreed to in advance, each fiber filament will terminate in a bulkhead cabinet using a SC/ APC type connector. 3. Optical Fiber Description - The fiber optic filaments per manufacturer's specification will be matched clad type with a typical field mode diameter of 8.8 - 9.6 flm at a wavelength of 1310 nm and 1O.5::l: 1.0 flm at a wavelength of1550 nm. The maximum attenuation of the fiber cable will be 0.35 dB/km at 1310 nm and 0.25 dB/km at 1550 nm. Page I 5 4. System Design - A design of the Fiber Link system will be provided to the City and its assignee prior to construction. Included in the package will be proposed route drawings, cable storage locations, splice point locations and fiber splice matrix. Additionally, for each of the fiber paths calculated lengths fibers and path losses at 1310 and 1550 nm wavelengths will be illustrated. 5. System Construction - The Fiber Link construction will follow good construction and engineering practices as generally described in the Aerial Cable Placement and Buried and Underground Cable Placement sections of the Society of Cable Telecommunications Engineers (SCTE) "Recommended Practices for Optical Fiber Construction and Testing" handbook. Page I 6 EXHIBIT B This is Exhibit B to that certain Fiber Optic WAN Use Agreement made on the _ day of , 2002 (the "Agreement"), by and between NORTHLAND CABLE TELEVISION, INC., a Washington corporation (herein "North]and") and the CITY OF PORT ANGELES, a municipality governed under the laws of the State of Washington (herein, the "City"). Testing Procedure Fiber Link Field Testing - Testing ofthe Fiber Link will be done in two phases during the Fiber Link construction: 1. Pre-installation - All dark fiber filaments will be tested at the time of materia] delivery for proper quality, quantity, and reliability, including but not limited to length, attenuation, and discontinuities. 2. After Node Installation and Splicing (Fina] Acceptance) - All dark fiber filaments will be tested after node installation and splicing for proper quality, quantity, and reliability, including but not limited to total path length, end-to-end attenuation, discontinuities, and splice loss. Testing will be done using procedures described in Sections 10.1 through 10.4 of the 1996 edition of Society ofCab]e Te]ecommunications Engineers' ("SCTE") "Recommended Practices for Optical Fiber Construction and Testing" handbook. A copy of the SCTE handbook is available at North]and's local business office. All test results will be documented for future reference. Page 17 Exhibit C - Northland Fiber Upgrade Plan and Node Areas Library Node included in Cable Television Franchise Ordinance No. 3116 relocated to Laurel Substation --.-.------~ -l"r ~. -'I' tu ~ n"".!: i:!: 'ii \ '" t ;;!- Pump Station #7 I-Net Node included in Cable Television Franchise Ordinance No. 3116 relocated to 16th and I Port of Port Angeles Node included in Cable Television Franchise Ordinance No. 3116 relocated to Valley Substation City Hall Node included in Cable Television Franchise Ordinance No. 3116 relocated to William Shore Memorial Pool PUD interconnection using splice case EXHIBIT 6.2 I-NET SERVICES EXPEDITED SCHEDULE SITE DROP CONSTRUCTION Site plans for City approval and permItting due CIty revisions or approval If revisions required, date due ReVIsions approved by City Construction complete I-NET NODE EQUIPMENT AND CUSTOMER PREMISES EQUIPMENT Equipment installed Network teshng Services available LAN SERVICES LAN plans and specifications for City approval City revIsions or approval If revisions reqUIred, date due Revisions approved by City LAN installation complete 8/30/02 9/3/02 9/6/02 9/11/02 11/11/02 11/25/02 12/9/02 12/23/02 11/29/02 12/6/02 12/11/02 12/16/02 1/3/03 page 18 EXHIBIT 6.3 CITY SITE LOCATIONS AND SERVICE REQUIREMENTS 1. CITY SITE LOCATIONS AND SERVICE REQUIREMENTS Service Requirement City Municipal Facilities Data, Mbps Site Description 5 100 1000 8 Node City Hall 321 E 5th Street 1 8 PA Police Department 1 8 Dispatch 911 1 166 Vern Burton Community Center 1 10 Fire Station 102 E 5th St 1 69 Senior Center 328 E 7th St 1 72 Carneqle Library 205 5 Lincoln St 1 73 Fine Arts Center 1203 E Laundsen 1 75 William Shore Pool 225 E 5th St 1 86 Parks Maintenance 16th St F St 1 87 Cemetery-Office 3127 W 18th St 1 55 Node Corp Yard 1703 5 B St 1 57 Wastewater Treatment Plant 1509 Columbia 1 56 Light Ops 240 W Front 1 54 Landfill 3501 W 18th 1 29 Pump Station #1 5th St & N St 1 30 Node Pump Station #7 W 19th St 1 31 Pump Station #10 1829.5 W 12thst 1 32 Pump Station #3 Manne & Hill 1 33 Pump Station #8 H St & 14th 1 34 Pump Station #4 313 Marine Dnve 1 35 Pump Station #2 1/2 Alley & Cherry 1 36 Pump Station #5 219 E 2nd St 1 37 Pump Station #9 Del Guzzi Dr. 1 38 Pump Station #6 933 Church St 1 2. CITY SITE LOCATIONS AND SERVICES COVERED BY THIS AGREEMENT Service Requirement City Municipal Facilities Data, Mbps Site Description 5 100 1000 39 Peabody Substation 2803 5 Peabody 1 40 Race Substation 1 41 Albert Substation 1 42 Laurel Substation 11 0 E 14th St 1 43 Washington Substation 224 5 Washington St 1 44 College Substation 1306 E Park St 1 45 Valley Substation 206 5 Valley St 1 46 A Street Substation 1616 A St 1 47 F Street Substation 1604 5 F St 1 48 I Street Substation 1538 W 7th St 1 page 19 EXHIBIT 6.4 SERVICE LEVELS 1. Network Equipment All network equipment shall be standards compliant, non-proprietary technology, able to support standards based interface types such as Ethernet/IP, ATM, and SONET. The equipment shall be scalable to meet future network expansion needs. The equipment shall be interoperable with other standards based Ethernet networks, speCIfically that of the Clallam County PUD No.1 (District), and/ or Northland, and/ or Qwest. The network shall be capable of enablrng cooperahve use by related networks 2. System Availability CP.I. shall provide demand maintenance twenty-four hours a day, seven days a week and shall maintain the sIte drops from the nodes to the points of demarcahon at all hmes. In emergency conditions, such as a natural emergency resulting from a windstorm, C P.I. wIll perform emergency repair work on the fiber and fIeld equipment. During an emergency, all fibers and field equipment at a given damage locahon shall be repaired concurrently without preference to function. During normal operating conditions, customer circuits will be up and operating satisfactorily at least 99.9%, as measured over each billing period, not including scheduled maintenance time, provided, however, that this reqUIrement does not apply to routine maintenance outages that are scheduled in advance by CP.I. and approved by the CIty Durrng normal operation conditions, CP.I. shall respond to all outage reports within two hours and make necessary repairs to the extent feasIble to restore service WIthin four hours of notification Monday through Sunday, 6 a.m. to 10 p.m Under normal operating conditions, CP.I. shall respond to degradation reports within twenty-four hours 3. Reliability Recovery due to a logical network break in the I-Net backbone under a ring configuration should not be greater than 12 microseconds under worst case conditions, with detection and rerouting typically occurring in approximately 300 microseconds. Recovery due to a physical network break or a node enclosure power, battery backup, heat or au conditioning fmlure shall be coordinated with Northland, which IS required by Subsection 8.7.1 of its Cable Television Franchise Ordinance No. 3116 to restore City I-Net breaks within four (4) hours of outage notificahon. The City and/ or Northland shall maintain a spare battery backup, heat and air conditioning unit in the event of a failure. 4. Network Security CP.I. shall provide protection against denial of service attacks with wire-speed extended access control lists, secure shell, secure copy, SImple network management protocol version 3, and authentication with AAA, RADIUS or TACACS+. CP.I. shall provide a dynamic virtual local area network (VLAN) that permits simplified network address administration with logical assignment of users to virtual commumties based on port, protocol, or subnet that mrnimizes broadcast traffic and ensures network secunty. CP.I. shall also provide private VLANs that allow increased I.P. addressing flexibility by portioning port-based VLANs for secunty while sharing a common router port. The VLAN shall allow CP.I. to segment users requiring access to sensitive irIformation into separate VLANs from the rest of the general user community regardless of physIcal location. Upon written City request, CP.I. shall assist the City at a charge consistent with Exhibit 6.5 Schedule 1.C to determine compatibility of any virtual private network (VPN) hardware and software, including but not limIted to firewalls, Internet secunty deVIces, encryption equipment and software, VPN servers, and VPN software, that may be provided by the City at the cost of the CIty. page 20 5. Network Latency The I-Net network latency will average no greater than 3 milliseconds between directly connected switches at Layer 2 only, during standard operating condItions. Average end-to-end latency will not exceed 50 milliseconds during normal operating condItions 6. Packet Loss Packet Loss across the I-Net backbone shall average 0 3% or less. If Packet Loss average across the I-Net backbone exceeds 0.3% during a calendar month, C P.L shall immedIately take action to comply with this requirement. This provision will take effect the first full calendar month after City's first use of the 1- Net backbone. 7. Monitoring and Network Optimization CP.L will periodically momtor and optimIze the I-Net backbone Monitoring shall be done between the furthest nodes usrng software and hardware components capable of accurately measuring traffic and responses at such nodes. The City acknowledges that such measurements may not measure the exact path traversed by the CIty'S packets and that such measurements constitute measurements across the I-Net backbone but not other networks to which the City may connect. CP.L shall provide the City with an inibal baseline monitoring report upon completion of its network and annual reports thereafter upon request by the City 8. Problem Reporting and Escalation Procedure a. The City shall first troubleshoot network problems to determine that the problem is a CP.L network problem pnor to contacting the C P.I Network Operations Center (NOC). b. A work order (trouble ticket) wIll be created based on the trouble call, and the CP.L troubleshoobng process and time clock will begin c. CPoL wIll provide a problem reporting and escalabon procedure to the CIty and will provide the City with progress and status information on trouble calls. The City should receive an Imtial callback regarding the status of the problem within thirty (30) minutes of the initial trouble report d. CP.L will attempt to resolve most problems within 1 hour of the problem report initially being logged and a trouble ticket being generated. The NOC wIll notify the City regarding the status of the reported problem and the estimated time to repair completion. e If, after 1 additional hour, the problem has not been resolved (within the parameters of the CPoL escalation procedure), the City may contact CP.L to escalate the problem priority. At this point, CPoL will assess the situabon, escalate the trouble ticket's priority as necessary, and provide a best estimate of time to complete the repair. f. If a CPoL technician is required to visit a City site to repair or troubleshoot a problem, the City may be charged for this service. There will be no charge if the problem necessitating the viSIt IS due to a failure of CP L's equipment or network that was not the result of City activity or is caused by CP.L In all other situabons, the City will be charged for repair or troubleshoot visits to City sites. The charge for thIS service will be in accordance with Exhibit 6.5 Schedule loC, rncluding travel time, with a mrnimum 1 hour charge. This charge will be added to the monthly invoice. 9. New Service For sites already receiving CP.L service, CP.L will add new services reqUIring only a software change within ten (10) days from the receipt of a written request for the additional service from the City and CP.I engineering approval of the change. Services requiring hardware changes will be scheduled with the City. For locations not receiving CP.L service, CP.L will add service to a new site where minimal facilities engineering and provisioning tasks are required within thirty (30) days from receipt of a written page 21 request for the service from the City. When more than mimmal facilihes engineering and provisioning tasks are required, the installation of service will be scheduled with the City. 10. Changes All requests for additions or changes to City sites shall be m wnting. A connectivIty change request form will be available from C P.I. and on-line at the CP.!. web site as well. The change request will be evaluated to assess engineermg issues and to determme whether the change is a no-cost change or is an addihonal cost item under this Agreement. If it is an additional cost item, it shall be approved in writing by the City, and the cost will be added to the invoice to the City CP I. will provIsion new service within ten (10) days of receIpt of a signed change request order and CP.!. engineering approval of the change. 11. I-Net Node Equipment Vendor Technical Support CP.I shall obtain and maintain through the term of the Agreement, and any extensions thereof, the support services of its I-Net node equipment vendor at a minimum level of 7x24 technical support availability and 24 hour parts replacement response time. page 22 EXHIBIT 6.5 SERVICE CHARGES 1. c.P.I. BASE CHARGESl A. C P.1. base charge per Ethernet port per facility per month including site drops during Initial Term for Exhibit 6.3 schedule 1 Ci sites B CP.1. non-recurrin connection base char e C C P I. Local Area Network serVICes char e E Additional CP.1. base charge per month for broadband Internet access (charges to be proVIded by October 15, 2002) Wide Area Networking (Within the Ci Data Mb s = 100 $345.00 $600.00 $80.00 er hour $ $ $ $ 2. REGULAR COMMERCIAL SERVICE CHARGES WITHIN THE CITYl A. CP.1. maXImum charge per Ethernet port per site location per month includin standard overhead faciIi site dro lUtility Taxes not included. Wide Area Networking Within the Ci Data Mb s = 100 $220.00 $600.00 $ page 23 EXHIBIT 6.5 SERVICE CHARGES 3. WIDE AREA NETWORKING SERVICE ADDITIONAL CHARGESl Wide Area Networking (Within the City and Clallam Coun servICe areas) Data Mb s = 100 A. Addlhonal charge per Ethernet port per month, mcluding standard overhead facilIty sIte drops charge within the Clallam Coun service area char e to be rovided Januar 15,2003 B. AddItional charge per Ethernet port per month, excluding standard overhead facility sIte drop charge wIthm Clallam County serVIce area char e to be rovIded Janua 15,2003 $ $ lUtility Taxes not included. page 24 EXHIBIT 6.6 INTERLOCAL AGREEMENT FOR ACQUISITION OF INSTITUTIONAL NETWORK SERVICES Pursuant to Chapter 39 34 of the Revised Code of Washington and other provisions of the law, , hereinafter called OTHER PARTY, and the CITY OF PORT ANGELES, a non- charter code City of the State of Washington, hereinafter called CITY, hereby agree to cooperatively obtain servIces accordrng to the following terms and conditions: 1. The City has negohated an institutional network services agreement with Capacity Provisioning, Inc (VENDOR) for the purchase of telecommunications services, WhICh is attached hereto as Exhibit A, and agrees to extend the privileges of said negotiation to the OTHER PARTY to the extent permitted by law and agreed upon by the CITY, the OTHER PARTY, and the VENDOR. 2. This Agreement is limited to services under the City's inshtutional network services agreement wIth the VENDOR. 3. The OTHER PARTY accepts responsibilIty for compliance with all laws and any additional or varyrng laws and regulations governing its acquisition of serVIces. Acquisition of services by the OTHER PARTY shall be effected by a purchase order directed to the VENDOR. 4. The CITY accepts no responsIbility for the performance of any purchasing contract by the VENDOR and accepts no responsibility for payment of services by the OTHER PARTY to the VENDOR. 5. Either the CITY or the OTHER PARTY may contract independently for the acquisition of serVIces, with or without notice to each other. 6. This Agreement is for services necessary for the operation of the CITY and the OTHER PARTY. 7. This Agreement shall remain in force until canceled by the CITY or the OTHER PARTY, which cancellation may be effected with or without notice to each other. CITY OF PORT ANGELES, W A ,WA Authorized Name AuthOrIzed Name Title Title Date Date page 25