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Telecommunications Provider Right-of-Way Use Agreement TELECOMMUNICATIONS PROVIDER RIGHT-OF-WAY USE AGREEMENT This Telecommunications Provider Right-of-Way Use Agreement ("Agreement") is made this f y day of July, 2014, by and between the CITY OF SALINA, KANSAS, a Kansas municipal corporation (the "City"), and KANSAS FIBER NETWORK, LLC, a Kansas limited liability company("KFN"). RECITALS A. KFN is an entity authorized by the Kansas Corporation Commission to provide telecommunications services within the State of Kansas, and has requested permission to install private underground fiber optic cabling and related facilities for exclusively data transmission in the City's public right-of-way. B. Pursuant to K.S.A. 17-1902, KFN is authorized to construct, maintain, and operate its telecommunications facilities within the City's public right-of-way, subject to the City's reasonable regulations related to the public health, safety, and welfare. C. KFN does not presently intend to use the proposed facilities or public right-of-way for the provision of any services for which a franchise is required by the City, including but not limited to "cable services," "open video system services," "local exchange services," or "competitive infrastructure provider services." D. The City has found it to be in the public interest to grant permission to KFN to install the underground fiber optic cabling and related facilities in the right-of-way, subject to the terms and conditions outlined below. THE PARTIES THEREFORE AGREE: 1. Definitions. For the purpose of this Agreement, the following words and phrases and their derivations shall have the following meanings: "Public right-of-way" means only the area of real property in which the City has a dedicated or acquired right-of-way interest in the real property. It shall include the area on, below or above the present and future streets, alleys, avenues, roads, highways, parkways or boulevards dedicated or acquired as right-of-way. The term does not include the airwaves above a right-of-way with regard to wireless telecommunications or other nonwire telecommunications or broadcast service, easements obtained by utilities or private easements in platted subdivisions or tracts. "Telecommunications services" means providing the means of transmission, between or among points specified by the user, of information of the user's choosing, without change in the form or content of the information as sent and received. 2. Grant. Subject to the terms and conditions of this Agreement, including but not limited to the franchise obligations set forth in Section 3 below, KFN is hereby granted the non- exclusive right to install, maintain, and use a private underground data transmission fiber optic system and related appurtenances (the "Facilities") within the City's public right-of-way, for the purpose of providing telecommunications services. 3. Franchise. KFN acknowledges and agrees that this Agreement is not a franchise agreement under K.S.A. 12-2001 et seq., and KFN must obtain a franchise, at the City's discretion and in accordance with applicable law, before KFN may use the public right-of-way for the provision of any telecommunications services for which a franchise may be required by the City, including but not limited to "cable services" (as defined by 47 U.S.C. § 522(6); "open video system services" (without payment of fees permitted by 47 U.S.C. § 573(c)(2)(B)), "local exchange services" (as defined in K.S.A. 12-2001(c)(7)), or "competitive infrastructure provider services" (as defined in K.S.A. 17-1902(a)(4)); or for the provision of any telecommunications services for which the City receives a "gross revenues" fee under the terms of any franchise between the City and another telecommunications provider, but subject to KFN's right to challenge in good faith any such franchise requirement. If KFN is required by law or this Section 3 to enter into a contract franchise ordinance with the City, the parties agree to act in good faith in promptly negotiating a contract franchise ordinance. 4. Term. The initial term of this Agreement shall be for a period beginning on the date of this Agreement, and ending June 30, 2019. Thereafter, this Agreement will automatically renew for additional one (1) year terms, unless either party notifies the other party of its intent to terminate the Agreement at least ninety (90) days before the expiration of the then current term. Any such additional term shall be deemed a continuation of this Agreement on the same terms and conditions. 5. Compliance with Law and Other City Regulations. A. The authority of KFN to use and occupy the public right-of-way shall always be subject and subordinate to the reasonable public health, safety, and welfare requirements and regulations of the City. The City may exercise its home rule powers in its administration and regulation related to the management of the public right-of-way, provided that any such exercise must be competitively neutral and may not be unreasonable or discriminatory. KFN shall be subject to all applicable laws and statutes, and all rules, regulations, policies, resolutions and ordinances now or hereafter adopted by the City. B. As a condition of this Agreement, KFN is required to obtain and is responsible for any necessary permit, license, certification, grant, registration or any other authorization required by any appropriate governmental entity, including, but not limited to, the City, the Federal Communications Commission (FCC) or the Kansas Corporation Commission (KCC). KFN shall also comply with all applicable laws, statutes and city ordinances, resolutions, and regulations (including but not limited to those relating to the construction in and use of the public right-of-way). The forgoing compliance obligations shall be subject to KFN's right to challenge in good faith such laws, statutes, and city ordinances, resolutions, and regulations. 6. Use of the Public Right-of-Way. A. Pursuant to K.S.A. 17-1902, and amendments thereto, and subject to the provisions of this Agreement, KFN shall have the right to construct, maintain and operate its facilities along, across, upon and under the public right-of-way. Such facilities shall be so constructed and maintained so as not to obstruct or hinder the usual travel or public safety on such public ways or obstruct the legal use by other utilities. All installations of KFN's facilities under hard surfaces shall be installed via the boring method, unless otherwise agreed by the City upon KFN's showing of undue hardship. For purposes of this requirement, the term "hard surfaces" shall mean concrete, asphalt, or any other hard surface with similar structural characteristics, including but not limited to streets, sidewalks, and driveways. B. KFN and its contractor shall coordinate the placement of the facilities in a manner which minimizes adverse impact on public improvements, as reasonably determined by the City. Where placement is not otherwise regulated, the facilities shall be placed with adequate clearance from such public improvements so as not to impact or be impacted by the public improvements. Because of the number of public utility facilities located along the right-of-way, KFN and its contractor shall stake the route to confirm the horizontal location and vertical elevation of the water, sanitary sewer and storm sewer lines along the route, and obtain the City's approval of such horizontal and vertical locations prior to beginning installation of any facilities. Except as otherwise approved by the City, which approval shall not be unreasonably withheld, KFN shall install the facilities a minimum of five (5) horizontal feet and two (2) vertical feet away from water, sanitary and storm sewer lines along the route. C. All of the materials, plans, and installation of the facilities shall be approved by or as directed by the City and in accordance with any other approved specifications for performing work in the public right-of-way. Prior to construction, reconstruction, or relocation of any facilities in the public right-of-way, KFN shall, at its own cost and expense, prepare and deliver to the City for approval, plans and specifications of the proposed installation. Such approval shall not be unreasonably withheld,delayed, or conditioned. D. KFN shall keep and maintain accurate records and as-built drawings depicting accurate horizontal and vertical locations of the facilities as constructed or reconstructed in the public right-of-way, which shall be made available to the City upon request. All points of the facilities shall be horizontally located from street centerline, or section or quarter section lines or corners. Vertical locations or all points of facilities shall consist of elevations in either City datum or United States Geological Survey datum. E. Nothing in this Agreement shall be interpreted as granting KFN the authority to construct, maintain or operate any facility or related appurtenance on property owned by the City outside of the public right-of-way. F. KFN shall participate in the Kansas One Call utility location program with respect to all of its facilities in the public right-of-way. 7. Limitation on Use of Portion of Right-of-Way. The City shall have the authority to prohibit the use or occupation of a specific portion of public right-of-way by KFN due to a reasonable public interest necessitated by public health, safety and welfare so long as the authority is exercised in a competitively neutral manner and is not unreasonable or discriminatory. A reasonable public interest shall include but not be limited to the following: A. The prohibition is based upon a recommendation of the city engineer, is related to public health, safety and welfare, and is nondiscriminatory among providers, including incumbent providers; B. KFN has rejected a reasonable, competitively neutral and nondiscriminatory justification offered by the City for requiring an alternate method or alternate route that will result in neither unreasonable additional installation expense nor a diminution of service quality; C. The City reasonably determines, after affording KFN reasonable notice and an opportunity to be heard, that a denial is necessary to protect the public health and safety and is imposed on a competitively neutral and nondiscriminatory basis; or D. The specific portion of the public right-of-way for which KFN seeks use and occupancy is environmentally sensitive as defined by state or federal law or lies within a previously designated historic district as defined by local, state or federal law. 8. Repair of Damage to Right-of-Way. KFN shall repair all damage to the public right-of-way caused by the activities of KFN, or of any agent, affiliate, employee, or subcontractor of KFN, while occupying, installing, repairing or maintaining facilities in the public right-of-way and return the right-of-way to its functional equivalence before the damage pursuant to the reasonable requirements and specifications of the City. If KFN fails to make the repairs required by the City, the City may make those repairs and charge KFN the costs of those repairs. If the City incurs damages as a result of a violation of this subsection,then the City shall have a cause of action against KFN for violation of this subsection, and may recover its damages, including reasonable attorney fees, if KFN is found liable by a court of competent jurisdiction. 9. Fees. Within fifteen (15) days of the effective date of this Agreement, KFN shall pay to the City a one-time application fee of $1,500.00. The parties agree that such fee reimburses the City for its reasonable and actual costs of reviewing and approving this Agreement. In addition, pursuant to K.S.A. 17-1902(n), and amendments thereto, the City may assess any of the following fees against KFN for use and occupancy of the public right-of- way, provided that such fees reimburse the City for its reasonable, actual and verifiable costs of managing the public right-of-way, and are imposed on all such providers in a nondiscriminatory and competitively neutral manner: A. A permit fee in connection with issuing each construction permit to set fixtures in the public right-of-way within the City, to compensate the City for issuing, processing and verifying the permit application. B. An excavation fee for each street or pavement cut to recover the costs associated with construction and repair activity of KFN, its assigns, contractors and subcontractors with the exception of construction and repair activity required pursuant to subsection (1) of K.S.A. 17-1902 related to construction and maintenance activities directly related to improvements for the health, safety and welfare of the public; provided, however, imposition of such excavation fee must be based upon a regional specific or other appropriate study establishing the basis for such costs which takes into account the life of the city street prior to the construction or repair activity and the remaining life of the city street. Such excavation fee is expressly limited to activity that results in an actual street or pavement cut. C. Inspection fees to recover all reasonable costs associated with the City's inspection of the work of KFN, its assigns, contractors, and/or subcontractors in the right-of- way. D. Repair and restoration costs associated with repairing and restoring the public right-of-way because of damage caused by KFN, its assigns, contractors, and/or subcontractors in the right-of-way. 10. Indemnification and Hold Harmless. A. It shall be the responsibility of KFN to take adequate measures to protect and defend its facilities in the public right-of-way from harm or damage. If KFN fails to accurately or timely locate facilities when requested, in accordance with the Kansas Underground Utility Damage Prevention Act, K.S.A. 66-1801 et seq., it shall have no claim for costs or damages against the City and its authorized contractors unless such parties are responsible for the harm or damage caused by their gross negligence or intentional conduct. The City and its authorized contractors shall be responsible to take reasonable precautionary measures including calling for utility locations and observing marker posts when working near KFN's facilities. B. KFN shall indemnify and hold the City and its officers and employees harmless against any and all claims, lawsuits, judgments, costs, liens, losses, expenses, fees (including reasonable attorney fees and costs of defense), proceedings, actions, demands, causes of action, liability and suits of any kind and nature, including personal or bodily injury (including death), property damage or other harm for which recovery of damages is sought, to the extent that it is found by a court of competent jurisdiction to be caused by the negligence of KFN, any agent, officer, director, representative, employee, affiliate or subcontractor of KFN, or its respective officers, agents, employees, directors or representatives, while installing, repairing or maintaining facilities in the public right-of-way. C. The indemnity provided by this subsection does not apply to any liability resulting from the negligence of the City, its officers, employees, contractors or subcontractors. If KFN and the City are found jointly liable by a court of competent jurisdiction, liability shall be apportioned comparatively in accordance with the laws of the State of Kansas without, however, waiving any governmental immunity available to the City under state law and without waiving any defenses of the parties under state or federal law. This section is solely for the benefit of the City and KFN and does not create or grant any rights, contractual or otherwise,to any other person or entity. 11. Insurance and Performance Bond. A. During the term of this Agreement, KFN shall obtain and maintain insurance coverage at its sole expense, with financially reputable insurers that are licensed to do business in the State of Kansas. If KFN elects to use the services of an affiliated captive insurance company for this purpose, that company shall possess a certificate of authority from the Kansas Insurance Commissioner. KFN shall provide not less than the following insurance: i. Workers' compensation as required by the laws of the State of Kansas, with an employers' liability limit equal to the amount required by law. ii. Commercial general liability, including coverage for contractual liability and completed operations liability, on an occurrence basis and not a claims made basis, with an aggregate limit of not less than Two Million Dollars ($2,000,000.00) combined single limit per occurrence for bodily injury, personal injury, and property damage liability. The City shall be included as an additional insured with respect to liability arising from KFN's operations under this Agreement. B. KFN shall, as a material condition of this Agreement, prior to the commencement of any work in the public right-of-way, deliver to the City a certificate of insurance or evidence of self-insurance, satisfactory in form and content to the City, evidencing that the above insurance is in force. KFN shall timely notify the City if the insurance is cancelled or materially changed with respect to areas and entities covered. KFN shall make available to the City on request the policy declarations page and a certified copy of the policy in effect, so that limitations and exclusions can be evaluated for appropriateness of overall coverage. C. KFN shall, as a material condition of this Agreement, prior to the commencement of any work in the public right-of-way, deliver to the City a performance bond in the amount of$50,000.00, payable to the City to ensure the appropriate and timely performance in the construction and maintenance of facilities located in the public right-of-way. The required performance bond must be with a good and sufficient surety, authorized to transact business in the State of Kansas, and satisfactory to the City in form and substance. 12. Notification of Claims. KFN or the City shall promptly advise the other in writing of any known claim or demand against KFN or the City related to or arising out of KFN's activities in a public right-of-way. 13. Removal or Relocation of Facilities. If requested by the City, in order to accomplish construction and maintenance activities directly related to improvements for the health, safety, and welfare of the public, KFN shall remove its facilities from the public right- of-way or shall relocate or adjust its facilities within the public right-of-way at no cost to the City. Such relocation or adjustment shall be completed as soon as reasonably possible within the time set forth in any request by the City for such relocation or adjustment. Any damages suffered by the City or its contractors as a result of KFN's failure to timely relocate or adjust its facilities shall be borne by KFN. 14. Termination. In the event of KFN's breach of this Agreement, the City shall terminate this Agreement in accordance with the following procedure. The City e the right to terns a g g p > shall first serve a written notice upon KFN, setting forth in detail the nature of the breach, and KFN shall have thirty (30) days thereafter to cure such breach. If the breach remains uncured at the end of the thirty (30) day period, the City may terminate this Agreement by serving written notice upon KFN. 15. Transfer and Assignment. This Agreement shall be assignable only to a telecommunications provider which holds a current and valid certificate of convenience and authority from the Kansas Corporation Commission, and any such assignment shall be preconditioned upon the City receiving written notice of the assignment (including notice of the name and address of the assignee and contact information) and a copy of the assignee's current certificate of convenience and authority no later than seven (7) days prior to the effective date of the assignment. Any attempted assignment of this Agreement without satisfying the requirements of this section shall be void. 16. Reservation of Rights. In entering into this Agreement, neither the City's nor KFN's present or future legal rights, positions, claims, assertions or arguments before any administrative agency or court of law are in any way prejudiced or waived. By entering into the Agreement, neither the City nor KFN waive any rights, but instead expressly reserve any and all rights, remedies, and arguments the City or KFN may have at law or equity, without limitation, to argue, assert, and/or take any position as to the legality or appropriateness of this Agreement or any present or future laws, ordinances, and/or rulings which may be the basis for the City and KFN entering into this Agreement. 17. Notices. KFN shall at all times maintain on file with the City a point of contact; or a telephone number that allows the City to reach an authorized person, who shall be available at all times to act on behalf of KFN in the event of an emergency. Emergency notice by KFN to the City may be made by telephone to the City Clerk or the Public Works Director. All other notices between the parties shall be in writing and shall be made by personal delivery, or by depositing such notice in the.U.S. Mail or Certified Mail, return receipt requested. Any notice shall be deemed delivered five (5) calendar days after the date of such deposit in the U.S. Mail unless otherwise provided. "Business day" for purposes of this section shall mean Monday through Friday, City-observed holidays excepted. City: KFN: City Clerk Kansas Fiber Network City of Salina, Kansas Attn: Steven Dorf, President and CEO P.O. Box 736 121 N. Mead, Ste 200 Salina, KS 67402-0736 Wichita, KS 67202 18. Failure to Enforce. The failure of either party to enforce and remedy any noncompliance with the terms and conditions of this Agreement shall not constitute a waiver of rights nor a waiver of the other party's obligations as provided herein. 19. Severability. If any clause, sentence, or section of this Agreement shall be held to be invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remainder, as a whole or any part hereof, other than the part declared invalid. 20. Force Majeure. Each and every provision hereof shall be subject to acts of God, fires, strikes, riots, floods, war and other disasters beyond KFN's or the City's control. 21. Applicable Law. This Agreement is made under and in conformity with the laws of the State of Kansas. EXECUTED the day and year first above stated. CITY OF S• . ,KANSAS By: Aaron . Householter,Mayor ATTEST: lei AIM Sh di Wicks, CMC, City Clerk KANSAS FI: ' '.' '': `Y"' C By: . A. Name: .SIIM j. Title: AiQtS/}E.v r/lam- '_ ACKNOWLEDGEMENTS STATE OF KANSAS, COUNTY OF SALINE, SS: / This instrument was acknowledged before me on /1 , 2014 by Aaron K. Householter as Mayor and by Shandi Wicks as ' C'I�rk of Salina, K sas. dXl_.., - (I Notary Public CATHY BOLL agifl Notary Public-State of Kan My Appt.Expires e- z0- STATE OF KANSAS, COUNTY OF SPo i'c-� ; SS: This instrument was acknowledged before me on July 2-/s-C- , 2014 by SL`eveA Do y-S as sio�-e i,`e of Kansas Fiber Netwo,rk T i C ESTHER JANSSEN 1.; *-1 9 Z e. a e.-"7"Th Notary Public-State of K nsas Notary Public My Apot.Expires y7/67/