066 of 2018 - Granting a Telecommunication Franchise to ExteNet Systems, Inc 0 18-1
0 18-8
SALT LAKE CITY ORDINANCE
No. 66 of 2018
(Granting a Telecommunication Franchise to
ExteNet Systems, Inc.)
WHEREAS, ExteNet Systems, Inc., a Delaware corporation (the "Company"),
desires to provide certain telecommunication services within Salt Lake City, Utah (the
"City"), and in connection therewith to establish a network in, under, along, over, and
across present and future streets, alleys and rights-of-way of the City, consisting of
telecommunication lines and cables, together with all necessary and desirable
appurtenances; and
WHEREAS, the City, in the exercise of its police power, ownership, use or rights
over and in the public rights-of-way, and pursuant to its other regulatory authority,
believes it is in the best interest of the public to provide to the Company, and its
successors, a non-exclusive franchise to operate its business within the City; and
WHEREAS, the City and the Company propose to enter into a Franchise
Agreement, the substantially final form of which has been presented to the City Council
at the meeting at which this Ordinance is being considered for adoption; and
WHEREAS, the City desires to approve the execution and delivery of such
Franchise Agreement and to otherwise take all actions necessary to grant the referenced
Franchise to the Company; and
WHEREAS, the City believes this Ordinance to be in the best interest of the
citizens of the City,
NOW, THEREFORE, be it ordained by the City Council of Salt Lake City, Utah,
as follows:
SECTION 1. Purpose. The purpose of this Franchise Ordinance is to grant to
the Company, and its successors and assigns, a non-exclusive right to use the present and
future streets, alleys, viaducts, bridges, roads, lanes and public way within and under
control of the City for its business purposes, under the constraints and for the
compensation enumerated in the Franchise Agreement attached hereto as Exhibit A, and
by this reference incorporated herein, as if fully set forth herein (the "Franchise
Agreement").
SECTION 2. Short Title. This Ordinance shall constitute the ExteNet
Telecommunications Franchise Ordinance.
SECTION 3. Grant of Franchise. There is hereby granted to the Company, and
its successors and assigns, in accordance with the terms and conditions of the Franchise
Agreement,the right, privilege, and franchise (collectively, the "Franchise"),to construct,
maintain and operate in, under, along, over and across the present and future streets,
alleys, and rights-of-way and other property of the City,all as more particularly described
in the Franchise Agreement.
SECTION 4. Term. The term of the Franchise is for a ten (10) year period from
and after the recordation of the executed Franchise Agreement with the Salt Lake City
Recorder's Office.
The Company shall pay all costs of publishing this Ordinance.
SECTION 5. Acceptance by Company. Within thirty (30) days after the
effective date of this Ordinance,the Company shall execute the Franchise Agreement and
return it to the City, otherwise, this Ordinance and the rights granted hereunder shall be
null and void.
SECTION 6.No Franchise revocation or termination may be effected until the
City Council shall first adopt an ordinance terminating the Franchise and setting forth the
reasons therefor, following not less than thirty (30) days prior written notice to the
Company of the proposed date of the ordinance adoption. The Company shall have an
opportunity on said ordinance adoption date to be heard upon the proposed termination.
SECTION 7. This Ordinance shall take effect immediately upon publication.
Passed by the City Council of Salt Lake City, _t , • 7th day of Nov. ,
2018.
C I SON
ATTEST:
CITY RECORDER
Transmitted to Mayor on December 4. 2018 •
Mayor's Action: X Approved. Vetoed.
MAYOR
ATTEST:
Salt Lake City Attorney's Office
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1, Ap oved As To Form
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Bill No. 66 of 2018.
Published: 12-7-2018
HB ATTY-#73318-v1-ORD ExteNet Franchise Ordinance
EXHIBIT "A"
FRANCHISE AGREEMENT
RECORDED
JAN 1 2019
CITY RECORDER FRANCHISE AGREEMENT
THIS FRANCHISE AGREEMENT (this "Agreement"), dated as of its date of
recordation with the Salt Lake City Recorder, by and between SALT LAKE CITY
CORPORATION, a Utah municipal corporation (the "City"), and EXTENET SYSTEMS, INC.,
a Delaware corporation (the "Company").
RECITALS
A. The Company desires a non-exclusive franchise to provide telecommunication
services to residents, businesses, and other customers within the boundaries of Salt Lake City.
Utah, and to utilize City rights-of-way for such purpose.
B. The City considers it to be in the best interests of the City, and in furtherance of
the health, safety, and welfare of the public, to grant such franchise to the Company. and in
connection therewith desires to authorize the use of City rights-of-way in accordance Na ith the
provisions of this Agreement, and all applicable City ordinances and state and federal law,
including. without limitation. the Federal Telecommunications Act of 1996 (the
"Telecommunications Act').
NOW. THEREFORE. in consideration of the premises and other good and valuable
consideration and, further. in contemplation of subsequent approval by legislative action of the
City Council as hereinafter provided, the parties mutually agree as follows.
ARTICLE I
FRANCHISE ORDINANCE
1.1 Ordinance. The City Council has adopted a franchise ordinance entitled ExteNet
Telecommunications Franchise Ordinance (the "Ordinance'), approving the execution of this
Agreement. Execution of this Agreement constitutes the unqualified acceptance of the
Ordinance by the Company. Such Ordinance is incorporated herein by reference, and made an
integral part of this Agreement.
1.2 Franchise Description. The Ordinance confers upon the Company, and its
successors and assigns, the right, privilege, and franchise (the "Franchise"), to construct,
maintain and operate in, under, along, over, across, and through portions of the City's Right-of-
Way (as defined in Section 3.1 hereof), facilities consisting of telecommunication lines and
cables (including, without limitation, fiber-optic and copper lines and cables), together with all
necessary and desirable appurtenances (including without limitation underground and above
ground conduits and structures, poles, towers, wire and cable) (collectively the "Company
Facilities"). Upon the annexation of any territory to the City, all rights hereby granted, and the
Franchise, shall automatically extend to the territory so annexed, to the extent the City has
authority to so extend the Franchise. All facilities owned, maintained, or operated by the
Company located within, under, or over rights-of-way of the territory so annexed shall thereafter
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be subject to all terms hereof. The Company Facilities may be used by the Company (and
others, as provided herein), for the purpose of providing any of the services contemplated to be
provided by telecommunications providers under the Telecommunications Act, and involving
any switched or other one-way or two-way transmission of voice or data, including but not
necessarily limited to (i) services interconnecting interexchange carriers for the purpose of any
transmission of voice or data; (ii) services connecting interexchange carriers or competitive
access carriers to local exchange providers for the purpose of any transmission of voice or data;
(iii) services connecting interexchange carriers to any entity, other than another interexchange
carrier or the local exchange provider for the purpose of any transmission of voice or data;
(iv) services providing private line point-to-point service for end users for the purpose of any
transmission of voice or data; (v) video, video conferencing or point-to-point private line service,
or (vi) any service regulated by state regulatory agencies or the Federal Communications
Commission which the state of Utah or Federal Communications Commission has authorized the
Company to provide.
Anything in this Agreement to the contrary notwithstanding. the Company may not use
the Company Facilities to (i) provide, to any customer within the City, cable television services
as defined in the federal Cable Communication Policy Act of 1984. as amended. or (ii) install
wireless facilities or support structures for such wireless facilities in the right of way, without a
separate franchise or license agreement therefor.
1.3 Term. The term of the Franchise is for a period from and after the date hereof,
until the date that is ten (10) years from the date hereof.
ARTICLE II
FRANCHISE FEE; ADMINISTRATION FEE
2.1 Franchise Fee. (a) For and in consideration of the Franchise, and as fair and
reasonable compensation to the City for the use by the Company of the City's Right-of-Way, the
Company will pay to the City an annual franchise fee (the "Franchise Fee"), in an amount equal
to, and consisting of, the municipal telecommunications license tax (the "Municipal
Telecommunications Tax") authorized pursuant to the Utah Municipal Telecommunications
License Tax Act, Title 10, Chapter 1, Part 4, Utah Code Annotated 1953, as amended (the
"Municipal Telecommunications Tax Act'). Such Franchise Fee shall be calculated in the
manner provided in the Municipal Telecommunications Tax Act, and shall be paid by the
Company to the Utah State Tax Commission, as agent for the City under an Interlocal
Cooperation Agreement by and among the City, the Utah State Tax Commission, and others, at
the times and in the manner prescribed in the Municipal Telecommunications Tax Act, and any
rules and regulations promulgated thereunder. Compliance by the Company with the terms and
provisions of the Municipal Telecommunications Tax Act, and any rules and regulations
promulgated thereunder, shall satisfy all requirements of this Agreement with respect to the
calculation and payment of the Franchise Fee.
(b) Notwithstanding the provisions of Section 2.1(a) above, the Franchise Fee shall
be calculated and payable as described therein only so long as the Company and the services
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provided within the City by the Company by means of the Company Facilities are subject to the
Municipal Telecommunications Tax. In the event all or any portion of the Company Facilities
ceases to be used by the Company to provide services subject to the Municipal
Telecommunications Tax, the Company shall pay, in lieu of the Franchise Fee, a charge with
respect to such portion of the Company Facilities, payable from and after the (i) the date
Company ceases to provide such services, or (ii) the date the Municipal Telecommunications
Tax ceases to apply to the services provided by the Company, which shall be calculated in the
same manner as the charge then imposed by the City on other Companies occupying the Right-
of-Way with similar facilities, and which do not provide telecommunication services subject to
the Municipal Telecommunications Act. The City and the Company agree to negotiate in good
faith any amendments to this Agreement as shall be necessary to accommodate the change or
elimination of the Municipal Telecommunications Act, including payment provisions: provided
such new or changed provisions shall conform substantially with the provisions contained in any
permits held by other similarly situated companies.
(c) The Company represents to the City that one of the purposes for entering into this
Agreement is to obtain authority to build or maintain a network within the City to provide
telecommunication services to customers within the City. Upon completion of the Company
Facilities, the Company will actively market customer services and generate local gross receipts
within the meaning of the Municipal Telecommunications Tax Act. The Company represents
that it expects to generate more than a nominal amount of gross receipts from local customers,
and that the use of the Company Facilities for other purposes. or to otherwise provide services to
customers located outside of the City, is not the sole or preeminent objective of the Company.
(d) Upon the written request of the City no more than once per year. the Company
shall submit to the City a certificate signed by a corporate officer of the Company certifying
whether or not all elements of the Company Facilities have been used to provide services which
generate gross receipts attributed to the City (within the meaning of the Municipal
Telecommunications Tax Act) during the preceding calendar year. Any elements of the
Company Facilities not so used shall be identified.
(e) For each calendar year, those elements of the Company Facilities that are not used
to provide services which generate gross receipts attributed to the City within the meaning of the
Municipal Telecommunications Tax Act shall be subject to the per linear foot charge provided
for in Salt Lake City Code § 14.32.425, or successor ordinance, as if such elements of the
Company Facilities were installed and maintained pursuant to a telecommunications right of way
permit (the "Non-Taxed Facilities"). On or before March Pt each year, Company shall pay to
City the per linear foot charges for its Non-Taxed Facilities for the preceding calendar year, as
provided for in Salt Lake City Code § 14.32.425, regardless of whether City requests the report
pursuant to Section 2.1(d). In the event an element of Company Facilities is changed from a
Non-Taxed Facility to a facility that provide services which generate gross receipts attributable
to the City within the meaning of the Municipal Telecommunications Tax Act, the per linear foot
charges for that particular element for the preceding year shall be pro-rated to the date of
dedication to such local services.
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2.2 Report of Franchise Fee Payment. Upon the written request of the City, the
Company shall prepare and deliver to the City, at such frequency as the City shall request, but
not more frequently than monthly, a report summarizing Company payments to the Utah State
Tax Commission for the requested period. Such report shall include such information related to
such payment as the City shall reasonably request, including by way of example, and not
limitation, the gross receipts of the Company from telecommunications service that are attributed
to the City during such period, and the methodology for calculating such gross receipts.
2.3 Record Inspection. The records of the Company pertaining to the reports and
payment required in this Agreement, including but not limited to any records deemed necessary
or useful by the City to calculate or confirm gross receipts, and all other records of the Company
reasonably required by the City to assure compliance by the Company with the terms of this
Agreement ("Company Confidential Information"), shall be open to inspection by the City
and its duly authorized representatives upon reasonable notice at all reasonable business hours of
the Company. The Company may require such inspection to be performed at any Company
Facilities where such Company Confidential Information may be located; provided that in the
event such Company Confidential Information is not located at Company Facilities within the
City. such Company Confidential Information shall be delivered by the Company for inspection
by the City at the address of the City set forth in Section 13.1 hereof. City will hold in strict
confidence and will keep confidential all Company Confidential Information. City will use
reasonable care to avoid publication or dissemination of such Company Confidential
Information. City will not disclose Company Confidential Information to any third person.
Notwithstanding the previous sentence. City may disclose Company Confidential Information to
its employees, officers. directors, consultants, advisors and agents (collectively.
"Representatives") to the extent reasonably necessary to carry out the inspection: provided.
however, that such Representatives are informed of the confidential nature of the Company
Confidential Information. and are bound by confidentiality obligations no less stringent than
those set forth herein. Notwithstanding the forgoing, Company acknowledges that City is subject
to the requirements of GRAMA as provided for in Paragraph 15.7 below. Company specifically
waives any claims against City related to disclosure of any materials as required by GRAMA.
2.4 Service of Process. The Company agrees to use its best efforts to provide a local
office within the State of Utah for purposes of acceptance of process. Otherwise, the Company
agrees to advise City of a person or office where such process may be served.
2.5 Administrative Fee. In addition to the annual Franchise Fee described above, the
Company shall pay to the City, upon execution and delivery hereof, a one-time administrative
fee of$5,000, which shall compensate the City for (but which does not exceed), the direct costs
and expenses incurred by the City in preparing, considering, approving, executing and
implementing the Ordinance and this Agreement.
ARTICLE III
COMPANY USE OF RIGHT-OF-WAY
3.1 Franchise Rights to Use Right-of-Way. (a) The Company shall have the right to
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excavate in, and use any present and future City-owned or controlled street, alley, viaduct,
bridge, road, lane and public way within the City, including the surface, subsurface and airspace
(collectively the "Right-of-Way"), subject to the terms and conditions of this Agreement and in
locations where Company obtains appropriate permits. In addition, the Company shall have the
right to utilize any easement across private property granted to the City for utility purposes,
provided (i) the prior written consent of the director of the City department which controls such
easement is obtained in each case, and (ii) the documents granting such easement to the City
authorize such use. In all cases, the precise location of the Company Facilities within, on, over,
under, across or through the Right-of-Way shall be subject to City approval, and the right to use
such Rights-of-Way shall be subject to the terms of this Agreement, and all applicable federal,
state, and City laws, ordinances, rules, and regulations now existing or from time to time adopted
or promulgated.
(b) The rights granted to the Company herein do not include the right to (i) excavate
in, occupy or use any City park, recreational areas or other property owned by the City, or (ii)
attach or locate any of the Company Facilities to or on, or otherwise utilize any of, any City-
owned property or facilities or structures, including without limitation light poles, towers,
buildings and trees. The use of such City-owned property or facilities by the Company shall be
considered by the City on a case-by-case basis, and shall be subject to payment of additional
compensation to the City. Similarly, the rights granted herein by the City to the Company do not
include the right to situate any Company Facilities on poles or other property owned by entities
other than the City and situated in the City's Right-of-Way. It shall be the responsibility of the
Company to negotiate any pole-attachment agreements or similar agreements with the owners of
such poles or facilities, and to pay to such owners any required compensation.
3.2 Duty to Relocate. (a) Whenever the City shall require the relocation or
reinstallation of any of the Company Facilities situated within the Right-of-Way, it shall be the
obligation of the Company, upon notice of such requirement and written demand made of the
Company, and within a reasonable time thereof, but not more than thirty (30) days from the date
of notice, to commence to remove and relocate or reinstall such Company Facilities as may be
reasonably necessary to meet the requirements of the City, which relocation shall be completed
within a reasonably practicable time thereafter, but in no event longer than one hundred twenty
(120) days, unless extended by mutual agreement. Such relocation may be required by the City
for any lawful purpose, including, without limitation, the resolution of existing or anticipated
conflicts or the accommodation of any conflicting uses or proposed uses of the Right-of-Way,
whether such conflicts arise in connection with a City project or a project undertaken by some
other person or entity, public or private. The City will cooperate with the Company to provide
alternate space where available, within the Right-of-Way, at no additional cost to the Company.
(b) Such relocation shall be accomplished by the Company at no cost or expense to
the City. In the event the relocation is ordered to accommodate the facilities of an entity other
than the City or the Company, the cost and expense of such relocation shall be borne by such
other entity. Any money and all rights to reimbursement from the State of Utah or the federal
government to which the Company may be entitled for work done by the Company pursuant to
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this paragraph, shall be the property of the Company. City shall assign or otherwise transfer to
the Company all rights it may have to recover costs for such work performed by the Company
and shall reasonably cooperate with the Company's efforts to obtain reimbursement.
3.3 City Duty to Obtain Approval to Move Company Property; Emergency
Exception. Except as otherwise provided herein, the City shall not, without the prior written
approval of the Company, intentionally alter, remove, relocate or otherwise interfere with any
portion of the Company Facilities. However, if it becomes necessary, in the judgment of the
City Representative (as defined in Section 6.1 hereof), to cut or move any of the Company
Facilities because of a fire, flood, emergency, earthquake disaster or other imminent threat
thereof, or to relocate any portion of the Company Facilities upon the Company's failure to do so
following a request by the City under Section 3.2 hereof, these acts may be done without prior
written approval of the Company and the repairs thereby rendered necessary shall be made by
the Company, without charge to the City. Any written approval required shall be reviewed and
processed by the Company within seven calendar days and approval shall not be unreasonably
withheld. conditioned, or delayed.
3.4 Annual Information Coordination. On or before February 28 of each calendar
year. or such other date as the Company and City may agree upon from year to year, the
Company and the City shall meet for the purpose of exchanging information and documents
regarding construction and other similar work within the City, with a view tow ard coordinating
their respective activities in those areas where such coordination may prove mutually beneficial.
Such information exchange shall be subject to the confidentiality requirements set forth in
Section 2.3 above and shall be in addition to. and not in lieu of. the requirements of Title 14,
Chapter 32 of the Salt Lake City Code.
3.5 Common Use of Facilities. (a) In order to minimize the adverse impact to the
Right-of-Way and to City facilities, and inconvenience to the public. caused by construction.
repair and maintenance activities multiple utility franchisees, it is the policy of the City to
encourage and require the shared use of telecommunication facilities by City franchisees and
permittees whenever practicable.
(b) Except when necessary to service a subscriber, and subject to the written approval
and conditions of the City, the Company shall. prior to constructing any Company Facilities,
fully utilize any excess capacity reasonably and cost-effectively available on any existing poles
or within any existing conduit, under such terms and agreements as the Company negotiates with
the owners of such poles or conduits. The City shall cooperate with the Company in negotiating
and obtaining permission to use such facilities.
(c) Whenever another franchisee or permittee of the City which is subject to a
provision substantially similar to this provision of this Agreement requests permission to utilize
any poles or other equipment of the Company for the purpose of attaching or locating therein or
thereon any facilities of such franchisee or permittee, the Company shall negotiate in good faith
with such franchisee or permittee to grant such permission under terms and conditions which
(i) are commercially reasonable, (ii) do not place such franchisee or permittee at a competitive
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disadvantage relative to the Company or any other franchisee or permittee of the City, (iii) would
not constitute a "barrier to entry" under the Telecommunications Act, and (iv) are, in any event,
no less onerous than those permitted or required under the Telecommunications Act. Without
limiting the generality of the foregoing, the provisions of this subsection (c) shall apply to all co-
location of fiber optic lines or other cables within excess conduit installed by the Company
pursuant to Section 14.32.095 of the Salt Lake City Code. The Company shall be required to
grant such permission only to the extent the facilities of such requesting franchisee or permittee
do not (i) interfere with the Company Facilities, (ii) conflict with uses proposed by the
Company, or anticipated within the reasonably foreseeable future, (iii) create a safety or quality
of services hazard, or (iv) do not conflict with any existing contractual relationships between the
Company and any other parties.
(d) No Company Facilities shall be installed or the installation thereof commenced on
any existing pole within the Right-of-Way until the proposed location, specifications and manner
of installation thereof are set forth upon a plot or map showing the existing poles, where such
installations are proposed. The plot or map shall be submitted for approval to the City
Representative.
(e) If the Company is required to locate Company Facilities within the Right-of-Way
other than Company Facilities which may' be attached to utility poles, the nature of such
Company Facilities shall be disclosed to the City Representative for approval as to the need
thereof and as to the location within the Right-of-Way. The installation shall be made under
such conditions as the City Representative shall prescribe.
(f) The Company may trim trees overhanging the Right-of-Way of the City to
prevent the branches of such trees from coming in contact with Company Facilities. All
trimming on City property shall be done with the approval of and under the direction of the
City's Urban Forester and at the expense of the Company.
(g) The Company shall, at the request of any person holding a building moving
permit issued by the City, temporarily raise or lower its wires to permit the moving of such
building. The expense of such temporary removal or raising or lowering of the wires shall be
paid by the person requesting the same and the Company shall have the authority to require such
payment in advance. The City agrees to cause prior written notice of the necessity to move wires
to be given as far in advance as possible, provided that in no event shall less than forty-eight(48)
hours advance notice be given.
3.6 Duty to Underground. It is the policy of the City to have lines and cables placed
underground to the greatest extent reasonably practicable in accordance with applicable law. In
furtherance of this policy, the Company agrees as follows:
(a) In addition to the installation of underground lines as provided in the applicable
rules and regulations of the Public Service Commission, the Company shall, upon payment of
the charges provided in its tariffs or their equivalent, place newly constructed lines and cables
underground in (i) new residential subdivision areas, if required by subdivision regulations
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adopted by the City, and (ii) within the Central Business District of the City.
(b) In any area of the City in which there are no aerial facilities other than antennas or
other facilities required to remain above ground in order to be functional, or in any portion of the
Right-of-Way in which all telephone wires and cables reasonably capable of undergrounding
have been placed underground, the Company shall not be permitted to erect poles except where
permitted by applicable law, but shall lay wires, cables, or other facilities on existing poles or
underground in the manner required by the City. The Company acknowledges and agrees that if
the City does not require the undergrounding of Company Facilities at the time of initial
installation, the City may, at any time in the future, require the conversion of the Company's
above-ground and/or aerial facilities to underground installation at the Company's expense
whenever telephone or other utilities are placed underground in the immediate vicinity of
Company's Facilities.
3.7 Company Duty to Comply With Rules and Regulations. Company Facilities
located on, upon, over or under the Right-of-Way shall be constructed, installed, maintained,
cleared of vegetation, renovated or replaced in accordance with such lawful rules and regulations
as the City may issue. The Company shall acquire, and any fees with respect to, such permits as
may be required by such rules and regulations, and the City may inspect the manner of such
work and require remedies as may be necessary to assure compliance.
3.8 Incorporation of Technology. The Company shall use its best efforts to
incorporate technological advances into its equipment and service when such advances have
been shown to be technically and economically feasible. safe and beneficial. Without limiting
the generality of the foregoing, the Company shall endeavor to make available to all of its
customers within the City. and continually improve, its high-speed internet service. if any. The
Company shall. in the regular course of its business. review technological advances that have
occurred in the telecommunication industry.
3.9 Compliance with Applicable Law. All Company Facilities installed or used under
color of this Agreement shall be used, constructed and maintained in accordance with applicable
federal, state and City laws and regulations, including without limitation environmental laws;
provided that this provision shall not be construed to require the Company to modify or retrofit
any existing facilities to meet new code standards unless otherwise required by law. Nothing in
this Agreement shall constitute a waiver of either party's right to challenge any portion of this
Agreement which is not in accordance with applicable federal, state and local laws.
3.10 Location to Minimize Interference. All Company Facilities shall be reasonably
located so as to cause minimum interference with the use of the Right-of-Way by others, and so
as to cause minimum interference with the rights of the owners of property which abuts any
portion of the Right-of-Way.
3.11 Repair Damage. If during the course of work on Company Facilities, the
Company causes damage to or alters any portion of the Right-of-Way, or any City facilities or
other public property or facilities, the Company shall (at its own cost and expense and in a
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manner approved by the City Representative), replace and restore such portion of the Right-of-
Way or any City facilities or other public or private property or facilities, in accordance with
applicable City ordinances, policies and regulations relating to repair work of similar character.
3.12 Guarantee of Repairs. For a period of three years following the completion of any
work in the Right-of-Way or any repair work performed pursuant to Section 3.11, the Company
shall maintain, repair, and keep in good condition those portions of the Right-of-Way or property
or facilities restored, repaired or replaced, to the reasonable satisfaction of the City Engineer.
3.13 Safety Standards. The Company's work, while in progress, shall be properly
protected at all times with suitable barricades, flags, lights, flares, or other devices in accordance
with applicable safety regulations or standards imposed by law.
3.14 Landscaping. The Company shall maintain the general appearance of any of its
buildings located within the City in a manner consistent with the surrounding properties. and the
appearance of Company Facilities in a manner consistent with best industry practice. Such
obligation to maintain the appearance of property shall include but not be limited to the
landscaping of front yards and parkways in residential zones; the installation of curb, gutter,
sidewalk and parkway landscaping in those areas where similar improvements have been, or are
being. installed on contiguous properties; and the screening of such property directly abutting a
public street or abutting residential property with appropriate landscaping or screening material
as required by the City's Planning Commission.
3.15 Inspection by the City. The Company Facilities shall be subject to inspection by
the City to the extent reasonably necessary to assure compliance by the Company with the terms
of this Agreement. The City shall inspect Company Facilities at reasonable times and upon
reasonable notice to the Company; provided. however, the inspection shall not interrupt or
interfere with any services provided by the Company.
3.16 Company's Duty to Remove Company Facilities from the Right-of-Way.
(a) Subject to subsection (c) below, the Company shall promptly remove from the
Right-of-Way all or any part of the Company Facilities, when one or more of the following
conditions occur:
(i) The Company ceases to operate such Company Facilities for a continuous
period of twelve (12) months, except when the cessation of service is a direct result of a natural
or man-made disaster;
(ii) The construction or installation of such Company Facilities does not meet
the requirements of this Agreement; or
(iii) The Franchise is terminated or revoked pursuant to notice as provided
herein.
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(b) Upon receipt by the Company of written notice from the City setting forth one or
more of the occurrences specified in subsection (a) above, the Company shall have ninety (90)
days from the date upon which said notice is received to remove such Company Facilities, or, in
the case of subsection (a),to begin operating the Company Facilities.
(c) The Company may abandon any underground Company Facilities in place,
subject to the reasonable requirements of the City, and with the prior written consent of the City,
which may be granted or withheld in the City's sole and absolute discretion. In such an event,
the abandoned system shall become the property of the City and the Company shall have no
further responsibilities or obligations concerning those facilities. The City shall not use the
possibility of obtaining ownership of the abandoned system as a rationale for terminating or
revoking this Agreement.
3.17 Operational Reports. During the period of construction of any Company
Facilities, the Company shall furnish the City with written progress reports indicating in detail
the area of construction. Such periodic reports shall be furnished at three-month intervals, the
first report to be made three (3) months after the construction commencement date.
3.18 Removal of Facilities upon Request. Upon termination of service to any
subscriber, the Company shall promptly remove Company Facilities and equipment from the
premises of such customer at the written request of such customer, and at no cost to the
subscriber, unless the Company's agreement with such subscriber provides otherwise.
Notwithstanding the foregoing, as long as regulations of the Utah Public Service Commission
govern the removal of Company Facilities, and the Company is in compliance with such
regulations, this Section 3.18 shall not apply.
ARTICLE IV
CITY USE RIGHTS
4.1 City Use of Poles and Overhead Structures. The City shall have the right, without
cost, to use all poles and suitable overhead structures owned by the Company within the City for
fire alarms, police signal systems, or any other lawful use; provided, however, any said uses by
the City shall be for activities owned, operated or exclusively used by the City for any public
purposes and shall not include the provision of telecommunication services to third parties.
4.2 Use of Trenches. Whenever the Company proposes to install new underground
conduits or replace existing underground conduits within or under the Right-of-Way, it shall
notify the City Representative as soon as practical and shall allow the City, at its own expense,
and without charge to the Company, to use any such trench opened by the Company to lay the
City's facilities therein; provided, that such action will not unreasonably interfere with Company
Facilities or delay the accomplishment of the Company's project; and provided further that the
Company may require the City to agree to reasonable terms and conditions of such use.
4.3 Use of Company Corridors. The City may identify corridors which the Company
now or in the future owns in fee within the City and which are similar in nature to transmission
10
corridors of electric utility companies. The City may identify portions of such corridors, if any,
as being desirable locations for public parks, playgrounds or recreation areas. In such event, and
upon notice by the City, the Company shall negotiate with the City in good faith to reach an
agreement providing for such uses by the City;provided that such use shall not be allowed where
the Company in good faith believes such use would interfere with the Company's use of the
corridor or materially prejudice its interests in safety. The Company shall assume no liability
nor shall it incur, directly or indirectly any additional expense in connection therewith.
4.4 Limitation on Use Rights. Nothing in this Article 4 shall be construed to require
the Company to increase pole capacity or trench size, alter the manner in which the Company
attaches equipment to the poles or installs facilities, or alter the manner in which it operates and
maintains its equipment. The City may attach to or otherwise utilize Company Facilities only
after written approval by the Company. Such approval may include requirements regarding
maintenance of such City facilities, either to be done for a reasonable fee by the Company or by
a qualified party who shall fully indemnify and hold the Company harmless from any liability
and whose service would not materially prejudice the Company's interests in safety and
insulation from liability.
ARTICLE V
POLICE POWER
The City expressly reserves, and the Company expressly recognizes, the City's right and
duty to adopt, from time to time, in addition to the provisions herein contained, such ordinances.
rules and regulations as the City may deem necessary in the exercise of its police power for the
protection of the health, safety and welfare of its residents and their properties. This Agreement
is subordinate to City's exercise of its police power.
ARTICLE VI
CITY REPRESENTATIVE
6.1 City Representative. Except as provided hereinafter, the City Engineer, or his/her
designee, or such other person as the Mayor may designate from time to time (which designation
shall be communicated to the Company in writing), is hereby designated the official of the City
having full power and authority, along with a representative of the City Attorney's Office, to
take appropriate action for and on behalf of the City and its inhabitants to enforce the provisions
of this Agreement and to investigate any alleged violations or failures of the Company to comply
with said provisions or to adequately and fully discharge its responsibilities and obligations
hereunder. The City Engineer or such other designee is referred to herein as the City
Representative. The failure or omission of the City Representative to so act shall not constitute a
waiver or estoppel. The City Representative shall be the Company's initial point of contact with
the City. Unless specifically provided otherwise, all decisions, consents or approvals required of
the "City" shall be made or given by the City through the City Representative. The City
Representative shall coordinate with other City officials, personnel and departments in all
matters relating to this Agreement.
11
6.2 Company Duty to Cooperate. In order to facilitate such duties of the City
Representative, the Company agrees:
(a) To allow the City Representative to inspect Company Facilities in accordance
with Section 3.15.
(b) That the City Representative may convey to the Company, and, with notice to the
Company in accordance with this Agreement, to the Federal Communications Commission, the
Utah Public Service Commission and any other regulatory agency having jurisdiction, any
complaint of any customer of the Company within the City with respect to the quality and price
of telecommunication services and the appropriate standards thereof; provided, however, that
City Representative's failure to provide any such notice to the Company shall not constitute a
breach of this Agreement.
(c) To submit to the City Representative a letter advising the City of any application
by the Company which, if approved, would materially affect the Franchise Fee. A copy of such
letter shall also be submitted to the City Attorney.
ARTICLE VII
Intentionally Deleted
ARTICLE VIII
CONTINUATION OF SERVICE
In the event the Company is or becomes the exclusive local exchange carrier providing
basic telephone exchange services within the City, the removal of Company Facilities, and the
discontinuation of telecommunication services by the Company within the City. shall be subject
to applicable regulations and procedures of the Public Service Commission, or any successor
regulatory body and, in the event the Utah Public Service Commission or such successor
regulatory body no longer regulates local exchange carriers providing basic telephone exchange
services within the City. such removal of facilities and discontinuation of services shall be
subject to the applicable regulations and procedures of any public body (including the City) then
regulating such carriers.
ARTICLE IX
TRANSFER OF FRANCHISE
(a) The Company shall not sell, transfer, lease, assign, sublet or otherwise make
available to any person or entity other than the Company, in whole or in part, either by forced or
involuntary sale, or by ordinary sale, contract, consolidation or otherwise, the Franchise or any
rights or privileges under this Agreement (each, a "Transfer"), to Proposed Transferee, without
the prior written consent of the City. The following events (by way of illustration and not
limitation) shall be deemed to be a Transfer of the Franchise requiring compliance with this
Article: (i) the sale, assignment or other transfer of all or a majority of the Company's assets to
another Person; (ii) the sale, assignment or other transfer of capital stock or partnership,
12
membership or other equity interests in the Company by one or more of its existing shareholders,
partners, members or other equity owners, so as to create a new Controlling Interest in the
Company; (iii) the issuance of additional capital stock or partnership, membership or other
equity interest by the Company so as to create a new Controlling Interest in the Company; or(iv)
the entry by the Company into an agreement with respect to the management or operation of the
Company or its facilities (including the Company Facilities).
(b) The consent required shall be given or denied by the City not later than one-
hundred twenty (120) days following receipt by the City of a written request for consent, and
shall not be unreasonably withheld. For the purpose of determining whether it shall grant its
consent, the City may inquire into the qualifications of the Proposed Transferee, and the
Company shall assist the City in the inquiry. City may condition or deny its consent based on
any or a combination of the following or similar criteria. The Proposed Transferee shall indicate
by affidavit whether it:
(i) has ever been convicted or held liable for acts involving deceit including
any violation of federal, State or local law or regulations, or is currently under an indictment,
investigation or complaint charging such acts:
(ii) has ever had a judgment entered against it in an action for fraud, deceit, or
misrepresentation by any court of competent jurisdiction;
(iii) has pending any material legal claim, lawsuit, or administrative
proceeding arising out of or involving a system similar to the Company Facilities, except that
any such claims, suits or proceedings relating to insurance claims, theft or service. or
employment matters need not be disclosed:
(iv) is financially solvent, by submitting financial data, including financial
statements, that have been audited by a certified public accountant. along with any other data
that the City may reasonably require;
(v) has the financial and technical capability to enable it to maintain and
operate the Company Facilities for the remaining term of this Agreement; and
(vi) the use of the Company Facilities and Right of Way by the Proposed
Transferee are consistent with the uses by the Company permitted under this Agreement.
The Company shall provide to the City information regarding any failure by the
Company to comply with any provision of this Agreement or of any applicable customer or
consumer service standards promulgated or in effect in the City's jurisdiction at any point during
the term of this Agreement.
(c) Notwithstanding the foregoing, the City's consent shall not be required in
connection with the following circumstances, provided that Company is not released from the
obligations under this Agreement and such transferee assumes this Agreement and agrees in
13
writing to comply with the terms and conditions of this Agreement:
(i) The intracorporate transfer from one wholly-owned subsidiary to another
wholly-owned subsidiary of a parent corporation;
(ii) Any transfer in trust, a mortgage, or other instrument of hypothecation of
the assets of the Company, in whole or in part, to secure an indebtedness, provided that
such pledge of the assets of the Company shall not impair or mitigate the Company's
responsibility and capability to meet all its obligations under this Agreement, and
provided further that such Proposed Transferee subordinates to this Agreement;
(iii) Any sale or other transfer by the Company of worn out or obsolete
equipment or property no longer required by the Company in connection with its
operations in the normal course of business; or
(iv) interconnection or use agreements pursuant to which the Company
Facilities may be used by another entity providing telecommunication services within the
City, provided that any such other entity has obtained a franchise from the City, and
further provided that such interconnection or use agreement is subordinate to this
Agreement.
(d) Transfer by the Company shall not constitute a waiver or release of any rights of
the City in or to its Right-of-Way and any transfer shall by its own terms be expressly subject to
the terms and conditions of this Agreement.
(e) A sale, transfer or assignment of this Agreement will only be effective upon the
Proposed Transferee becoming a signatory to this Agreement by executing an unconditional
acceptance of this Agreement.
(0 For purposes of this Article IX. the following terms shall have the following
meanings:
(i) "Control" or "Controlling Interest' means actual working control in
whatever manner exercised, including, without limitation, working control through ownership,
management, debt instruments or negative control, as the case may be, of the Company Facilities
or of the Company. A rebuttable presumption of the existence of Control or a Controlling
Interest shall arise from the beneficial ownership, directly, by any person, or group of persons or
entities acting in concert, of more than fifty percent (50%) of the Company. "Control" or
"Controlling Interest" as used herein may be held simultaneously by more than one Person.
(ii) "Person" means any individual, sole proprietorship, partnership,
association or corporation, or any other form of organization, and includes any natural
person.
14
(iii) "Proposed Transferee" means a proposed purchaser, transferee, lessee,
assignee or person acquiring ownership or control of the Company.
(g) As contemplated by Section (c)(iii) above, the parties agree and acknowledge
that, notwithstanding anything in this Agreement to the contrary, certain Company Facilities
deployed by Company in the Right-of-Way pursuant to this Agreement may be owned and/or
operated by Company's third-party wireless carrier customers ("Carriers") and installed and
maintained by Company pursuant to license agreements between Company and such Carriers.
Such license agreements shall be subordinate to this Agreement. Such Company Facilities shall
be treated as the Company's for all purposes under this Agreement provided that (i) Company
remains responsible and liable for all performance obligations under the Agreement with respect
to such Company Facilities; (ii) City's sole point of contact regarding such Company Facilities
as it relates solely to this Agreement shall be Company; and (iii) Company shall have the right to
remove and relocate such Company Facilities pursuant to the terms of this Agreement.
ARTICLE X
EARLY TERMINATION OR REVOCATION OF FRANCHISE
10.1 Grounds for Termination. The City may terminate or revoke this Agreement and
all rights and privileges herein provided for any of the following reasons:
(a) The Company fails to make timely payments of the Franchise Fee as required
under Article II of this Agreement, or any other fee due to the City under the terms of this
Agreement, and does not correct such failure within twenty (20) business days after receipt of
written notice by the City of such failure.
(b) The Company. by act or omission, violates a material term or condition herein set
forth within the Company's control, and with respect to which redress is not otherwise herein
provided. In such event, the City, acting by or through its City Council, may after public hearing,
determine that such failure is of a material nature and thereupon, after written notice given to the
Company of such determination, the Company shall, within thirty (30) days of such notice,
commence efforts to remedy the conditions identified in the notice, and shall have six (6)months
from the date it receives notice to remedy the conditions. After the expiration of such six (6)
month period and upon failure by the Company to correct such conditions, the City may declare
the Franchise forfeited and this Agreement terminated, and thereupon the Company shall have
no further rights or authority hereunder; provided, however, that any such declaration of
forfeiture and termination shall be subject to judicial review as provided by law, and provided
further that in the event such failure is of such nature that it cannot be reasonably corrected
within the six (6) month period above, the City shall provide additional time for the reasonable
correction of such alleged failure if the Company (i) commences corrective action during such
six(6) month period, and (ii) diligently pursues such corrective action to completion.
(c) The Company becomes insolvent, unable or unwilling to pay its debts, is
adjudged bankrupt, or all or part of its facilities are sold under an instrument to secure a debt and
is not redeemed by the Company within sixty(60) days.
15
(d) In furtherance of the Company policy or through acts or omissions done within
the scope and course of employment. a member of the Board of Directors or an officer of the
Company knowingly engages in conduct or makes a material misrepresentation with or to the
City. that is fraudulent or in violation of a felony criminal statute of the State of Utah.
(e) Company abandons use of all Company Facilities for 12 consecutive months.
10.2 Reserved Rights. Nothing contained herein shall be deemed to preclude the
Company from pursuing any legal or equitable rights or remedies it may have to challenge the
action of the City.
ARTICLE XI
COMPANY INDEMNIFICATION: INSURANCE
I I.1 No City Liability. The City shall in no way be liable or responsible for any loss
or damage to property or any injury to. or death of. any person that may occur in the
construction. operation or maintenance by the Company of the Company Facilities. City will be
liable only for its own conduct, subject to and without waiving any defenses. including limitation
of damages. provided for in the Utah Governmental Immunity Act (Utah Code §§ 63G-7-101 ei
seq.) or successor provision. Company agrees that the Rights-of-Way are delivered in an "AS
IS. WHERE IS" condition and City makes no representation or warranty regarding their
condition. and disclaims all express and implied warranties.
1 1.2 Company Indemnification of City. Company shall indemnify. save harmless. and
defend City. its officers and employees. from and against all losses. claims. counterclaims.
demands. actions. damages. costs. charges. and causes of action of every kind or character.
including attorneys' fees. arising out of Company's intentional. reckless. or negligent
performance hereunder or under the Ordinance. Company's duty to defend City shall exist
regardless of whether City or Company may ultimately be found to be liable for anyone's
negligence or other conduct. If City's tender of defense. based upon this indemnity provision. is
rejected by Company. and Company is later found by a court of competent jurisdiction to have
been required to indemnify City. then in addition to any other remedies City may have. Company
shall pay City's reasonable costs. expenses. and attorneys' fees incurred in proving such
indemnification. defending itself. or enforcing this provision. Nothing herein shall be construed
to require Company to indemnify the indemnitee against the indemnitees' own negligence. The
provisions of this section 11.2 shall survive the termination of this Agreement.
11.3 Notice of Indemnification. City shall (a) give prompt written notice to the
Company of any claim. demand or lien with respect to which the City seeks indemnification
hereunder and (b) unless in the City's judgment a conflict of interest may exist between the City
and the Company with respect to such claim. demand or lien, permit the Company to assume the
defense of such claim. demand. or lien with counsel satisfactory to City. If such defense is not
assumed by the Company. the Company shall not be subject to any liability for any settlement
made without its consent. Notwithstanding any provision hereof to the contrary. the Company
shall not be obligated to indemnify. defend or hold the City harmless to the extent any claim.
16
demand or lien arises out of or in connection with any negligent act or failure to act of the City
or any of its officers or employees.
11.4 Insurance.
(a) The Company, at its own cost and expense, shall secure and maintain, and shall
ensure that any subcontractor to the Company shall secure and maintain, during the term of this
Agreement the following policies of insurance:
• (i) Commercial General Liability Insurance. Commercial general liability
insurance with the City as an additional insured on a primary and non-contributing bases
in comparison to all other insurance including City's own policy or policies of insurance,
in the minimum amount of $2,000,000 per occurrence with a $3,000,000 general
aggregate and $3,000.000 products completed operations aggregate. These limits can be
covered either under a CGL insurance policy alone, or a combination of a CGL insurance
policy and an umbrella insurance policy and/or a CGL insurance policy and an excess
insurance policy. The policy shall protect the City. Company, and any subcontractors
from claims for damages for personal injury, including accidental death, and from claims
for property damage that may arise from the Company's operations under this
Agreement, whether performed by Company itself, any subcontractor, or anyone directly
or indirectly employed by either of them. Such insurance shall coverage e for
provideg
premises operations, acts of independent contractors. products. and completed operations.
(ii) Commercial Automobile Liability Insurance. Commercial automobile
liability insurance that provides coverage for owned, hired, and non-owned automobiles,
used in connection with this Agreement in the minimum amount of with a combined
single limit of $2.000,000 per occurrence. These limits can be covered either under a
commercial automobile liability insurance policy alone, or a combination of a
commercial automobile liability insurance policy and an umbrella insurance policy
and/or a commercial automobile liability insurance policy and an excess insurance
policy. If the policy only covers certain vehicles or types of vehicles, such as scheduled
autos or only hired and non-owned autos, Company shall only use those vehicles that are
covered by its policy in connection with any work performed under this Agreement.
(iii) Workers' Compensation and Employer's Liability. Worker's
compensation and employer's liability insurance sufficient to cover all of the Company's
employees pursuant to Utah law, unless a waiver of coverage is allowed and acquired
pursuant to Utah law. In the event any work is subcontracted, the Company shall require
its subcontractor(s) similarly to provide worker's compensation insurance for all of the
latter's employees, unless a waiver of coverage is allowed and acquired pursuant to Utah
law.
17
(b) General Insurance Requirements.
(i) Any insurance coverage required herein that is written on a "claims made"
form rather than on an "occurrence" form shall (A) provide full prior acts coverage or
have a retroactive date effective before the date of this Agreement, and (B)be maintained
for a period of at least three (3) years following the end of the term of this Agreement or
contain a comparable "extended discovery" clause. Evidence of current extended
discovery coverage and the purchase options available upon policy termination shall be
provided to the City.
(ii) All policies of insurance shall be issued by insurance companies
authorized to do business in the state of Utah and either:
(A) Currently rated A-or better by A.M. Best Company; and
—OR—
(B) Listed in the United States Treasury Department's current Listing
of Approved Sureties (Department Circular 5.'0), as amended.
(iii) The Company shall furnish certificates of insurance, acceptable to the
City, verifying the foregoing matters concurrent with the execution hereof and thereafter
as required.
(iv) In the event any work is subcontracted. the Company shall require its
subcontractor. at no cost to the City. to secure and maintain substantially the same
coverage with substantially the same limits as required of the Company hereunder.
(v) Company shall provide the City with thirty (30) days' prior written notice
of cancellation to the City or 10 days' prior written notice for cancellation due to non-
payment of premiums, if such policy is not replaced prior to the cancellation of the
original policy with a policy meeting the minimum requirements hereunder. Company
shall also provide City with evidence of such replacement policy.
ARTICLE XII
REMEDIES
12.1 Duty to Perform. The Company and the City agree to take all reasonable and
necessary actions to assure that the terms of this Agreement are performed and neither will take
any action for the purpose of securing modification of this Agreement before either the Public
Service Commission or any court of competent jurisdiction; provided, however, that neither
Party shall be precluded from taking any action it deems necessary to resolve differences in
interpretation of this Agreement.
12.2 Remedies at Law. In the event the Company or the City fails to fulfill any of its
respective obligations under this Agreement, the Party that is not in default may exercise any
18
remedies available to it provided by law; however, no remedy that would have the effect of
amending the provisions of this Agreement shall become effective without a formal amendment
of this Agreement.
ARTICLE XIII
NOTICES
13.1 City Designee and Address. Unless otherwise specified herein, all notices from
the Company to the City pursuant to or concerning this Agreement shall be delivered to the City
at Housing and Neighborhood Development Division, Real Estate Services Manager, at 451
South State Street, Room 248, P.O. Box 145460, Salt Lake City, Utah, 84114-5460, with a copy
to the City Attorney. at 451 South State Street, Room 505A, P.O. Box 145478 Salt Lake City,
Utah 84114-5478, and (b) such other offices as the City may designate by written notice to the
Company.
13.2 Company Designee and Address. The Company shall maintain an office and
telephone number for the conduct of matters relating to this Agreement and the Franchise during
normal business hours. Unless otherwise specified herein, all notices from the City to the
Company pursuant to or concerning this Agreement or the Franchise shall be delivered to:
Company: ExteNet Systems, Inc.
3030 Warrenville Road, Suite 340
Lisle, Illinois 60532
ATTN: Chief Financial Officer
Phone: 630-505-3800 (Corporate number for all purposes)
Fax: 630-577-1332 (number for all purposes)
With a copy to: ExteNet Systems, Inc.
3030 Warrenville Road, Suite 340
Lisle. Illinois 60532
ATTN: General Counsel
For invoices: ExteNet Systems, Inc.
3030 Warrenville Road, Suite 340
Lisle, Illinois 60532
ATTN: Accounts Payable
Or by e-mail to ap@util.extenetsystems.com
Network Operation Center 866-892-5327
(24/7):
ARTICLE XIV
AMENDMENT
14.1 Changing Conditions; Duty to Negotiate. (a) The Company and the City
19
recognize that many aspects of the telecommunications business are currently the subject of
discussion. examination and inquiry by different segments of the industry and affected regulatory
authorities. and that these activities may ultimately result in fundamental changes in the Nvav the
Company conducts its business. In recognition of the present state of uncertainty respecting these
matters. the Company and the City each agree. at the request of the other during the term of this
Agreement. to meet with the other and discuss in good faith whether it would be appropriate. in
view of developments of the kind referred to above during the term of this Agreement. to amend
this Agreement or enter into separate. mutually satisfactory arrangements to effect a proper
accommodation of any such developments.
(b) Either party may propose amendments to this Agreement by giving thirty (30)
days written notice to the other of the proposed amendment(s) desired. and both parties
thereafter. through their designated representatives. vyill. within a reasonable time. negotiate in
good faith in an effort to agree upon mutually satisfactory amendment(s).
14.2 Amendment Approval Required. No amendment or amendments to this
Agreement shall be effective until mutually agreed upon by the City and the Company and an
ordinance or resolution approving such amendments is approved by the City Council.
ARTICLE XV
NIISCELLANEOUS
15.1 Conditions. If any section. sentence. paragraph. term or provision of this
Agreement or the Ordinance is for any reason determined to be or rendered illegal. invalid. or
superseded by other lawful authority including any state or federal. legislative. regulatory or
administrative authority having jurisdiction thereof. or determined to be unconstitutional. illegal
or invalid by any court of competent jurisdiction. such portion shall he deemed a separate.
distinct. and independent provision and such determination shall have no effect on the validity of
any other section. sentence. paragraph. term or provision hereof or thereof. all of which will
remain in full force and effect for the term of this Agreement and the Ordinance or any renewal
or renewals thereof. except for Article II hereof.
15.2 No Waiver or Estoppel. Neither the City nor the Company shall be excused from
complying with any of the terms and conditions of this Agreement by any failure of the other. or
any of its officers. employees. or agents. upon any one or more occasions to insist upon or to
seek compliance with any of such terms and conditions.
15.3 Fee Article Essential. (a) Article II hereof is essential to the adoption of this
Agreement. The Company shall not initiate. sponsor or support any litigation that seeks to
invalidate the Franchise Fee provisions contained in Article II hereof, or to reduce the amount of
the Franchise Fee payable hereunder. In the event the Franchise Fee provisions hereof are
determined to be illegal, invalid, unconstitutional. or are superseded by legislation. in whole or
in part. this entire Agreement and the Franchise shall. to the fullest extent not prohibited by law.
and subject to the following provisions of this Article. be voided and terminated. Such
termination shall be effective as of the date of a final appealable order. or the effective date of
20
any such legislation, unless otherwise agreed by the City and the Company.
15.4 Waiver of Non-Severability. Notwithstanding the foregoing, if City stipulates in
writing to judicial, administrative or regulatory action that seeks a determination that Article II is
invalid, illegal, superseded or unconstitutional, then a determination that Article II is invalid,
illegal, unconstitutional or superseded shall have no effect on the validity or effectiveness of any
other section, sentence, paragraph term or provision of this Agreement, which shall remain in
full force and effect.
15.5 Lease Terms upon Termination. In the event this Agreement is terminated
pursuant to Section 10.1 hereof, the City grants to the Company a lease according to the same
terms and conditions as set forth in this Agreement. Accordingly. the Company shall pay, as fair
market rental value, the same amounts. at the same times, required for the payment of the
Franchise Fee pursuant to Article II hereof, and shall be bound by all other terms and conditions
contained herein; provided. however, that in no event will the Company be obligated to pay a
higher percentage of gross receipts than is paid by other similarly situated franchisees serving
within the City.
15.6 Parity among Providers. The City and Company mutually agree that Company
will at all times be treated. regarding fees assessed and charges and all other franchise rights and
privileges hereunder, on parity with other telecommunications providers.
15.7 Utah Governmental Records Management Act. Whenever the Company is
required to deliver to the City, or make available to the City for inspection. any records of the
Company, and such records are delivered to or made available to the City with a written claim of
business confidentiality which meets, in the judgment of the City Representative, the
requirements of the Utah Governmental Records Management Act (`'GRAMA"). such records
shall be classified by the City as "protected" within the meaning of GRAMA, and shall not be
disclosed by the City except as may otherwise be required by GRAMA, by court order. or by
applicable City ordinance or policy.
15.8 Timeliness of Approvals. Whenever either party is required by the terms of this
Agreement to request the approval or consent of the other party, such request shall be acted upon
at the earliest reasonable convenience of the party receiving the request, and the approval or
consent so requested shall not be unreasonably denied or withheld.
15.9 Representation Regarding Ethical Standards for City Officers and Employees and
Former City Officers and Employees. The Company represents that it has not (1) provided an
illegal gift or payoff to a City officer or employee or former City officer or employee, or his or
her relative or business entity; (2) retained any person to solicit or secure this contract upon an
agreement or understanding for a commission, percentage, or brokerage or contingent fee, other
than bona fide employees or bona fide commercial selling agencies for the purpose of securing
business; (3) knowingly breached any of the ethical standards set forth in the City's conflict of
interest ordinance, Chapter 2.44, Salt Lake City Code; or (4) knowingly influenced, and hereby
promises that it will not knowingly influence, a City officer or employee or former City officer
21
or employee to breach any of the ethical standards set forth in the City's conflict of interest
ordinance, Chapter 2.44, Salt Lake City Code.
15.10 Governing Law. This Agreement shall be governed by and interpreted in
accordance with the laws of the State of Utah.
15.11 Entire Agreement. This Agreement contains all of the agreements of the parties
with respect to any matter addressed in this Agreement, and supersedes all prior discussions,
agreements or understandings pertaining to any such matters for all purposes.
15.12 Authority. Each individual executing this Agreement on behalf of the City and
Company represents and warrant that such individual is duly authorized to execute and deliver
this Agreement on behalf of the City or Company (as applicable).
[Signatures begin on following page.]
22
WITNESS WHEREOF, this Franchise Agreement is executed in duplicate originals as of
the day and year first above written.
SALT LAKE CITY CORPORATION, a
T<< "a� Utah municipal corporation
CITY e;"*4+�
v'. Fi 59itx1i
• `. '�'..;U `�0 Jacqueline M. Biskupski, Mayor
��i`Y`Cb *Q," ` ILi( t G
ORA obi l
���+�iA.,.4.-�� Date: u
0 ji r,
7VU =! '' RECORDED
f Date of Recordation: IAN 1 4 2�19
'ity Recorder
CITY RECORDER
Appro ed: s o Fo 1:
Kmberly K. h;trans
Senior City Attorney
23
ExteNet Systems, Inc., a Delaware
corporation
By
Name: Dan' . Timm
Title: EVP-CFO
Date: 1 � �� I9
State of Ti )
:ss
County of'10 )
On the - day of IA410 , 201 , personally appeared before me
U
10 / . rhn� , who, being by me duly sworn did say that he/she is the gV P—CO of
ExteNet Systems. Inc., and that the foregoing instrument was signed on behalf of said company
and said person acknowledged to me that he/she is authorized to execute such instrument on
behalf of said company.
NOTARY P LIC, residing in2)10 County,��
My Commission Expires:
9 OFFICIAL SEAL
a 7 .Oa O MARY C ARENA
NOTARY PUBLIC-STATE OF ILLINOIS
DAY COMMISSION EXPIRES:09127/20
24