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HomeMy WebLinkAboutResolution No. R19-15RESOLUTION NO. R19-15 A RESOLUTION TO APPROVE A NON-EXCLUSIVE FRANCHISE AGREEMENT BETWEEN THE CITY OF LAUREL AND FATBEAM LLC FOR INSTALLATION, CONSTRUCTION, RECONSTRUCTION, OPERATION, AND MAINTENANCE OF A FIBER OPTIC SYSTEM WITHIN THE CITY OF LAUREL, MONTANA. BE IT RESOLVED by the City Council of the City of Laurel, Montana: Section 1: Approval. The Franchise Agreement negotiated between the City of Laurel and Fatbeam LLC for the provision of a fiber optic system in the City of Laurel is hereby approved. A copy is attached hereto for convenience. Section 2: Execution. The Mayor and City Clerk of the City of Laurel are hereby given authority to accept and execute said agreement on behalf of the City. Section 3: Effective date. This Agreement is hereby approved retroactively to April 16, 2019. Introduced at a meeting of the City Council on May 7, 2019, by Council Member Sparks. PASSED and ADOPTED by the City Council of the City of Laurel, Montana, this 7`" day of May 2019. CITY OF*LAUEw'ZZ, T omas C,Mayor Bethany Wgve, Werk -Treasurer APPROVED AS TO FORM: Sam Paintef-Civil R19-15 Fatbeam Franchise Agreement FRANCHISE AGREEMENT This Franchise Agreement ("Franchise") is between the City of Laurel, Montana hereinafter referred to as the "Grantor or City" and Fatbeam LLC hereinafter referred to as the "Grantee." This Franchise is entered into pursuant to the authority provided by the City's Charter, City Ordinance 004-06, and Sections 7-14-4101 and 7-1-4123(8) MCA. The Grantor hereby acknowledges that the Grantee has substantially complied with the material terms and conditions required by the City's Franchise Ordinance. Based on the documents prepared and submitted by Grantee, Grantor has concluded it appears the financial, legal, and technical ability of the Grantee is reasonably sufficient to provide the services, facilities, and equipment necessary to meet the requirements of the proposed facilities and services, proposed area of service while protecting the City's best interest when utilizing the City's public rights-of-way ("Streets"). 1. Definitions: a. "City or Grantor" means the City of Laurel, a municipal corporation of the State of Montana and includes all areas incorporated within the City Limits as of the effective date of this Agreement and any other areas subsequently added by annexation or other means. b. "Facilities" means all infrastructure and equipment, including but not limited to, fiber optic cable, wire, and conduit installed within the Service Area and Streets of the City. C. "Franchise" means the non-exclusive authorization granted hereunder of a franchise, privilege, permit or license to install, construct, operate and maintain a Fiber Optic System within the Service Area and Streets of the City. d. "Service Area" shall mean the geographic boundaries of the Grantor and any other areas subsequently added by annexation or other means. e. "Streets" means the public streets, avenues, highways, boulevards, concourses, driveways, bridges, tunnels, parks, parkways, waterways, alleys, sidewalks, boulevards, and other rights-of-way and easements, and the public grounds, places or water within the existing geographic boundaries of Grantor and any other areas subsequently added by annexation or other means. f. "Subscriber" means any person lawfully receiving service from the Grantee. 2. Granting of Franchise. The Grantor hereby grants to Grantee a non-exclusive Franchise for the use of certain portions of the Streets within the Service Area for the installation, construction, operation and maintenance of the Fiber Optic System, upon the terms and conditions set forth herein. Nothing in this Franchise shall be construed to prohibit the Grantee from offering any service over its Fiber Optic System that is not prohibited by federal or state law, or city ordinance. 3. Term. The Franchise shall be for a term of ten (IQ) years, commencing on the Effective Date of this Franchise as set forth in Section 14. This Franchise will be automatically extended for an additional term of five (S) years from the expiration date as set forth in Section 14, unless either party notifies the other in writing of its desire to not exercise this automatic extension (and enter renewal negotiations) at least one (l) years before the expiration of this Franchise. If such a notice is given, the parties will begin negotiating a new Franchise. 4. Use of the Streets and Dedicated Easements. a. Grantee shall have the right to use the Streets of the Grantor for the installation, construction, operation and maintenance of the Fiber Optic System, including the right to repair, replace and enlarge and extend the Fiber Optic System, provided that Grantee shall utilize the facilities of utilities whenever practicable. b. The facilities of the Grantee shall be installed underground in those Service Areas where existing telephone and electric services are both underground at the time of system construction. In areas where either telephone or electric utility facilities are installed aerially at the time of system construction, the Grantee may install its facilities aerially with the understanding that at such time as the existing aerial facilities are required to be placed underground by the Grantor, the Grantee shall likewise place its facilities underground. C. Grantee shall have the right to remove, trim, cut and keep clear of the Fiber Optic System, the trees in and along the Streets of the Grantor. d. Grantee in the exercise of any right granted to it by the Franchise shall, at no cost to the Grantor, promptly repair or replace any facility or service of the Grantor which Grantee damages, including but not limited to any Street or sewer, electric facility, water main, fire alarm, police communication or traffic control. 5. Maintenance of the System. a. Grantee shall, at all times, employ ordinary care in the maintenance and operation of the Fiber Optic System so as not to endanger the life, health or property of any citizen of the City or the property of the City. b. All construction practices and installation of equipment shall be done in accordance with all applicable sections of the National Electric Safety Code. C. The Fiber Optic System shall be designed, constructed and operated to meet the standard conditions imposed by the City by and through its Public Works Director. At a minimum, the fiber optic cable: (1) Shall be placed within 5 feet of the right-of-way regardless of other underground facilities in place, unless otherwise authorized by the City; (2) Shall be placed at least 42 inches deep, unless waived by the City; 2 (3) Must have a warning tape 18 inches above the cable; and (4) Aboveground markings should be in at least 500 feet intervals and at all crossings. 6. Service. The Grantee shall continuously maintain and operate its Fiber Optic System within the Service Area so long as this Franchise is in effect. Grantee shall have the right, but not the obligation, to extend the Fiber Optic System into any other portion of the Service Area, including annexed areas. However, the provision of Cable Service as defined by federal law requires a Franchise issued pursuant to City Ordinance 004-06 and the Cable Television Consumer Competition Act of 1992. 7. Insurance/Indemnity. 8. a. The Grantee shall maintain throughout the term of the Franchise insurance in amounts at least as follows: Workers' Compensation Commercial General Liability Auto Liability including coverage on all owned, non -owned hired autos Umbrella Liability Statutory Limits $1,000,000 per occurrence, Combined Single Liability (C.S.L.) $2,000,000 General Aggregate $1,000,000 per occurrence (C.S.L.) $1,000,000 per occurrence C.S.L. b. The Grantor shall be added as an additional insured, arising out of work performed by Grantee, to the above Commercial General Liability, Auto Liability and Umbrella Liability insurance coverage. C. The Grantee shall furnish the Grantor with current certificates of insurance evidencing such coverage upon request. d. Grantee hereby agrees to indemnify and hold the Grantor, including its agents and employees, harmless from any claims or damages resulting from the actions of Grantee in installation, constructing, operating or maintaining the Fiber Optic System. Grantor agrees to give the Grantee written notice of its obligation to indemnify Grantor within ten (10) business days of receipt of a claim or action pursuant to this section. Notwithstanding the foregoing, the Grantee shall not be obligated to indemnify Grantor for any damages, liability or claims resulting from the willful misconduct or negligence of Grantor, Grantor's employees or agents. Revocation. a. Prior to revocation or termination of the Franchise, the Grantor shall give written notice to the Grantee of its intent to revoke the Franchise on the basis of a pattern 3 of noncompliance by the Grantee, including one or more instances of substantial noncompliance with a material provision of the Franchise. The notice shall set forth the exact nature of the noncompliance. The Grantee shall have sixty (30) days from such notice to either object in writing and to state its reasons for such objection and provide any explanation or to cure the alleged noncompliance. If Grantee has not cured the breach within such sixty (60) day time period or if the Grantor has not otherwise received a satisfactory response from Grantee, the Grantor may revoke the Franchise through an action of the City Council at either a regular or special council meeting. b. At the Council Meeting, the Grantor shall provide the Grantee the opportunity to provide the City Council with its position on the matter, present evidence and question witnesses. After the presentation is concluded, the City Council shall take action to either revoke or not revoke the Franchise. Grantor shall maintain minutes of the Council Meeting and a copy of all exhibits and evidence submitted by Grantor and Grantee constituting the record. A copy of the findings and decision shall be made available to the Grantee within ten (10) business days. The Grantee may appeal such determination to an appropriate court for its review. C. Upon revocation of the Franchise, Grantee shall remove the Fiber Optic System from the Streets of the Grantor, or with the Grantor's express and written permission, abandon the Fiber Optic System in place. 9. Equal Protection. If any other provider of similar services (without regard to the technology used to deliver such services) is lawfully authorized by the Grantor or by any other state or federal governmental entity to provide such services using facilities located wholly or partly in the public rights-of-way of the Grantor, the Grantor shall, within thirty (30) days of a written request from Grantee, modify this Franchise to insure that the obligations applicable to Grantee are no more burdensome than those imposed on the new competing provider. If the Grantor fails to make modifications consistent with this requirement, Grantee's Franchise shall be deemed so modified thirty (30) days after the Grantee's initial written notice. As an alternative to the Franchise modification request, the Grantee shall have the right and may choose to have this Franchise with the Grantor be deemed expired thirty (30) days after written notice to the Grantor. Nothing in this Franchise shall impair the right of the Grantee to terminate this Franchise and, at Grantee's option, negotiate a renewal or replacement franchise, license, consent, certificate or other authorization with any appropriate government entity. 10. Confidentiality. If Grantee provides any books and records to the Grantor, the Grantor agrees to treat as confidential such books, records or maps that constitute proprietary or confidential information. Until otherwise ordered by a court or agency of competent jurisdiction, the Grantor agrees that, to the extent permitted by state and federal law, it shall deny access to any of Grantee's books and records marked confidential to any person. 11 11. Notices, Miscellaneous. a. Unless otherwise provided by federal, state or local law, all notices, reports or demands pursuant to this Franchise shall be in writing and shall be deemed to be sufficiently given upon delivery to a Person at the address set forth below, or by U.S. certified mail, return receipt requested, nationally or internationally recognized courier service such as Federal Express or electronic mail communication to the designated electronic mail address provided below. Grantor: Citv of Laurel P.O. Box 10, Laurel, Montana 59044 cityclerk@laurel.mt.gov Grantee: Fatbeam LLC 2065 West Riverstone Dr., Suite 105 Coeur D'Alene, Idaho 83814 b. All provisions of this Franchise shall apply to the respective parties, their lawful successors, transferees and assigns. If any particular section of this Franchise shall be held invalid, the remaining provisions and their application shall not be affected thereby. d. In the event of any conflict between this Franchise and any Grantor ordinance or regulation, this Franchise will prevail. 12. Force Maieure. The Grantee shall not be held in default under, or in noncompliance with the provisions of the Franchise, nor suffer any enforcement or penalty relating to noncompliance or default, where such noncompliance or alleged defaults occurred or were caused by circumstances reasonably beyond the ability of the Grantee to anticipate and control. This provision includes, but is not limited to, severe or unusual weather conditions, fire, flood, or other acts of God, strikes, work delays caused by failure of utility providers to service, maintain or monitor their utility poles to which Grantee's System may be attached, as well as unavailability of materials and/or qualified labor to perform the work necessary. 13. Franchise Fee. As a material term of this Franchise, and in consideration of the right provided Grantee to occupy City Streets for the purpose of installing and operating a Fiber Optic System within the City, Grantee agrees: a. To timely pay all future fees or taxes adopted by the City in accordance with Montana law pertaining to Grantee's operations within the City. b. Proceeds of any future adopted fee or tax shall be paid to the City in accordance with the terms of any adopting document or, if not specified in such document, no later than 30 days after the end of each calendar quarter (quarters shall end at the end of March, June, September and December). Should Grantee be prevented by law from collecting a fee or tax adopted by the City or any portions thereof, then Grantee shall be excused from the collection and distribution of the fee or tax. 14. Effective Date. The Franchise granted herein will take effect and be in full force from such date of acceptance by Grantee recorded on the signature page of this Franchise and approval by the City Council. This Franchise shall expire as provided herein or by the mutual agreement of Grantor and Grantee. 15. Acceptance and Entire Agreement. The Grantor and the Grantee, by virtue of the signatures set forth below, agree to be legally bound by all provisions and conditions set forth in this Franchise. The Franchise and submittals Grantee provides the City pursuant to the Franchise and City's Franchise Ordinance constitute the entire agreement between the Grantor and the Grantee. No modifications to this Franchise may be made without an appropriate written amendment signed by both parties. on Considered and approved this I LP day of �`, 20� I is ORMI M104 AT Bet an a Clerk -Treasurer Approved a f Sam S. Painter, Civil City Attorney Accepted this t uO day of *, 20A, subject to applicable federal, state and local law. Fatbeam LLC Signature: Name/Title: a �z, ��"r 1' - CO CU Date: LI / 2 /00i I VA 60 fotbecam 2065 w. riverstone drive ste. 105 coeur d'alene, id 83814 o 509 3441008 f 509 344 1009 April 2, 2019 Tom Nelson Interim City Mayor City of Laurel 115 W. 15t St. Laurel, MT 59044 Re: Franchise Agreement between City of Laurel and Fatbeam, LLC Dear Mr. Stofko, Enclosed please find two executed original hard copies of the finalized Franchise Agreement between City of Laurel and Fatbeam, LLC. Please notify me when the City Mayor has executed this agreement. Thank you for all your assistance (including the City Attorney, Sam Painter) with getting this document together and approved. If you need any additional information, please don't hesitate to contact me. Sincerely, Jessica Woods Project Coordinator �� • • •o••• .• �••• :•:• • fat b'ea m 2o65 west riverstone drive suite soy coeurd'alene, id 83814 t 509 3441008 f 509 3441009 February 28, 2019 Mr. Matthew Lurker, Chief Administrative Officer City of Laurel PO Box 10 Laurel, Montana 59044-0010 RE: Memorandum Request for a Franchise Agreement Dear Mr. Lurker, Fatbeam, LLC, a limited liability company in Washington State and registered in the State of Montana as a foreign business, is a fiber optic network provider delivering dark and lit fiber optic capacitythat give customers the connectivity they need to accelerate and grow their operations. Lead by Gregory Green, Co-founder and CEO, and Shawn Swanby, Co-founder and Principal, the entire Fatbeam family is passionate and driven to bringing high-quality fiber -based network solutions to organizations across the Western US. We have been contracted by the Laurel School District to build a fiber optic network to connect all of the schools providing them with greater capacity than they previously had. It is the intention of Fatbeam that the build -out of the fiber optic network will become the cornerstone of a much larger, affordable network serving the entire community of Laurel including education, healthcare, local government, and business and enterprise constituencies offering each the opportunity, access, and capabilities to compete in the new, knowledge-based economy. Fatbeam will build this network both aerially and underground utilizing the public right- of-way and utility easements. Please see our detailed route drawings for more information. Fatbeam requires our subcontractors to restore any areas that have been disturbed to the same or better condition than it was in before work commenced. Fatbeam confirms Greg Green & Shawn Swanby have not voluntarily filed for relief under any provisions of the bankruptcy laws of the United States, had no involuntary petition filed against it pursuant to the Bankruptcy Code, has not been subject of any state law insolvency proceeding and has not had a franchise agreement revoked by any other city or town in the United States of America. © O i 00® v••.• O `uotbeam 2o65 west riverstone drive suite soy coeur d'alene, id 83814 t 509 3441oo8 f 509 3441009 In addition, I have enclosed the following documentation: • Demonstration of our financial ability to construct and operate our proposed system. • Montana Secretary of State Certification Letter If you have any questions or need additional documentation, please don't hesitate to contact me via email at iessica(a)fatbeam.com or by phone at (602) 390-6562. Kind regards, Jessica Woods Protect Coordinator/Operations •i0•• • 0.0• • •000• ....0 .,0 i•; .• ... fatb*-*-.e*am 2065 w. riverstone drive ste. 105 coeur d'alene, id 83814 o 509 3441008 f 509 3441009 City of Laurel PO Box 10 Laurel, Montana 59044-0010 RE: Financial Abilities To Whom It May Concern: Fatbeam, LLC is a fiber optic network provider in the Western United States delivering Wide Area Network (WAN) and Gigabit Internet services to education, government, healthcare and business entities. The Company has been in operations for 9 years and has a solid history of installing and delivering fiber networks and services in over 40 markets. The Company recently signed a contract with the Laurel School District to deliver WAN services utilizing the FCC USAC E -rate program. Fatbeam will receive federal funds during the installation period (known as Special Construction) to help offset the costs associated with this network build. In addition to the federal funding, Fatbeam also has access to private capital, which will allow it to expand the network and deliver services to the surrounding community. Fatbeam looks forward to working with the City of Laurel and bringing highspeed broadband services to the area. Kind Regards, Greg Green CEO Fatbeam I "Tnt TV -116 M Tllrkq� GUEST SCP MT ! 11, i j 1 1 1;1�'I�;gi: Iiii lei DI 110111 ZI f-If.11 #06)a 4:4 V I DI February 28, 2019 I, COREY STAPLETON, Secretary of State for the State of Montana, do hereby certify that FV., -4 0 a " -kTjq 4 filed its Annual Report for a Foreign LLC 2019 with this office and has fulfilled the applicable requirements set forth in law. By virtue of the authority vested in this office, I hereby issue this certificate evidencing the filing is effective on the date shown below. Certified File Number: E068263 - 12373400 Effective Date: February 28, 2019 Next year's annual report will be due by April 15th. Thank you for being a valued member of the Montana business community. I wish you continued success in your future endeavors. 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