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HomeMy WebLinkAboutResolution 55-23RECORD OF RESOLUTIONS GOVERNMENT FORMS & SUPPLIES 844-224-3338 FORM NO. 30045 55-23 Resolution No. Passed 20 A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A MASTER NETWORK AGREEMENT WITH ALTAFIBER FOR THE BROADBAND TO THE HOME PROJECT WHEREAS, the City of Dublin has determined that the provision of High-Speed Broadband Services, as defined below, to residents and businesses is a critical public need that directly impacts the vitality and quality of life within the City; and WHEREAS, the COVID-19 pandemic has manifested the importance of High-Speed Broadband Services for employment, education, consumerism, telemedicine and other resident needs to successfully function and compete in today’s society; and WHEREAS, local governments across the country have recognized that the provision and delivery of High-Speed Broadband Services will require the intervention and partnership of local governments with private telecommunication providers to achieve delivery of high speed broadband service and ensure that no portion of the community is underserved or left behind; and WHEREAS, the City issued a request for proposals (“RFP”) from internet service providers to deploy, operate, and maintain a broadband internet network; and WHEREAS, seven proposals were received and the City’s evaluation team evaluated the proposals and ultimately selected altafiber as the strategic partner to move forward with negotiations for a contract; and WHEREAS, altafiber has proposed a plan to extend its backbone fiber optic network to all Addressable Locations within the City Limits of Dublin, to provide High Speed Broadband Services to City residents and businesses (collectively, “Consumers”); and WHEREAS, the Parties have negotiated in good faith to develop acceptable terms to enter into a binding Agreement defining the objectives, duties, roles, and responsibilities of each party with respect to extending the backbone fiber network of altafiber to provide High Speed Broadband Services to the Consumers within the City of Dublin. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Dublin, ‘L__ of its elected members concurring, that: Section 1. The City Manager is hereby authorized to execute the attached Master Network Agreement with altafiber for the purpose of providing broadband services to all Dublin residents .and businesses with changes not inconsistent with this Ordinance and not substantially adverse to the City and which shall be approved by the City Manager. Section 2. Council further hereby authorizes and directs the City Manager, the Director of Law, the Director of Finance, the Clerk of Council, or other appropriate officers of the City to take any other actions as may be appropriate to implement this Ordinance without further legislation being required. Section 3. This Ordinance shall take effect in accordance with 4.04(b) of the Dublin Revised Charter. RECORD OF RESOLUTIONS GOVERNMENT FORMS & SUPPLIES 844-224-3338 FORM .NO,30045. 55-23 Page 2 of 2 Resolution No. Passed , 20 e Passed this 2b day of Osecne , 2023. Penal Lgl. Mayor - Presiding Officer // ae of Council J To: Members of Dublin City Council From: Megan D. O’Callaghan, City Manager Date: June 20, 2023 Initiated By: Doug McCollough, Chief Information Officer Brandon Brown, Director of Innovation and Performance Analytics/Interim Director of Information Technology Kendel L. Blake, Management Analyst Re: Resolution 55-23 – Authorizing the City Manager to Enter Into a Master Network Agreement with altafiber for the Broadband To The Home Project Background In support of Council’s goal to be the most connected city, Staff has selected a service provider partner to execute a plan to build new network infrastructure within the City and make competitive Internet services available to all Dublin residents and businesses. Background on the goal and the activities that have been completed in support of the goal are outlined below. Analysis Together with consultant Entropy, Inc., a cross disciplinary team including Ice Miller, Communications & Public Information, the Chief Information Officer, Information Technology and the Office of the City Manager, performed a comprehensive analysis, inclusive of resident sentiment, market research, technical assessment and benchmarking of other communities around the U.S. Culminating and summarized by the report delivered by Entropy, this analysis led to our foundational model of soliciting the private sector for a Service Provider partner to share the cost of building new fiber optic infrastructure, based on Passive Optical Networking (PON) technology, capable of delivering 10 Gbps (hereinafter referred to as “Gig”) reaching all Dublin residents and businesses. The analysis also concluded that the vast majority of customers will opt for services less than 1 Gig. RFP The City published a Request for Proposals (RFP) on July 8, 2022, seeking a partner to build a network according to the best outcomes of the analysis. The City received seven proposal responses. Entropy, Inc. and the cross disciplinary evaluation team underwent the evaluation and selection process that first evaluated all proposals and shortlisted three respondents. The four respondents that were not shortlisted were informed that they were not in the running for the project. The evaluation team underwent an additional process that requested clarification and details from the top three respondents and ultimately selected altafiber as the strategic partner to move forward with negotiations for a contract. Staff then informed the other two companies in the top three that they were not selected. Partner Selection The team established a series of meetings in April through June with altafiber to negotiate terms for a contract. As an example, the company had questions about the City’s permitting process and Office of the City Manager 5555 Perimeter Drive • Dublin, OH 43017 Phone: 614.410.4400 Memo Memo re. Resolution 55-23 – Authorizing the City Manager to Enter Into a Master Network Agreement with altafiber for the Broadband To The Home Project June 20, 2023 Page 2 of 3 construction requirements. Touchpoints were designed to provide the company with introductions to the City’s Engineering team and points of contact who will process permits for the projects, as well as answer questions for them so that a streamlined permitting process may be ensured. The negotiation process resulted in a Master Network Agreement (“Agreement”) that is being recommended for Council’s approval. The Agreement was fully vetted and prepared from all experts on the City side - including consultant Entropy, Ice Miller, Frost Brown Todd, Dublin IT and Dublin Engineering. Summary The company, altafiber, engaged in detailed negotiations with the City team addressing the anticipated expectations, interests, assumptions and potential impacting factors of this significant project. Both the City team and the altafiber team have developed an Agreement that satisfies the interests of both parties as well as meets the Most Connected City goal, with regard to the delivery of fiber optic based broadband Internet access for all Dublin residents and businesses. Under the proposed 15-year term Master Network Agreement “Agreement”, altafiber will design, build, operate, and maintain a new fiber optic network, based on XG-PON (10 Gig PON technology, capable of service levels up to 10 Gig). altafiber will be investing roughly $35 million into this fiber optic network. Dublin will be the first completed fiber high-speed broadband service area of comparable size in the central Ohio region. Project Implementation – Construction altafiber will execute their project plan through submission of construction permit requests and coordination with Project staff on the City side. The City will form an internal project team to manage the vendor and the contract. The City will execute a communications plan, announcing the partnership and facilitating messaging with residents, businesses, the media, industry and other partners and stakeholders, such as Dublin City Schools. altafiber will use reasonable efforts to ensure all addressable locations are fiber passed within 36 months and to substantially complete the network extension work for all addressable locations within 48 months. Rates altafiber will provide mass market introductory rate packages for High-Speed Broadband Services that are the same or better to what altafiber currently offers to Consumers in the State of Ohio, and offer standard rate packages for High-Speed Broadband Services that are the same or better to what altafiber currently offers to Consumers in the State of Ohio during the Term of the Agreement. Municipal Fiber altafiber will allocate up to twelve (12) fibers within all “backbone” feeder fiber cables by altafiber for potential future use for governmental purposes. The City must elect the number of fibers and fiber routes no later than July 1, 2024. Dublin agrees that the Municipal Fiber shall be used for internal governmental use by the City and will not compete with altafiber’s service. Dublin will enter into an Indefeasible Right of Use (IRU) agreement no later than July 1, 2024, for the allocated fiber, with a maximum annual cost of $95,000 to the City for all twelve fibers during the Term of this Agreement. Network Operation and Support Memo re. Resolution 55-23 – Authorizing the City Manager to Enter Into a Master Network Agreement with altafiber for the Broadband To The Home Project June 20, 2023 Page 3 of 3 In addition to altafiber providing the broadband service and customer support, altafiber agrees to locate a local office within the City of Dublin. Unicity Smart City/Innovation Center altafiber will provide either a $275,000 Unicity Smart City allowance or contribute $250,000 to an Innovation Center. The Dublin team will work to identify which option best suits the needs of the community. An idea for the Unicity allowance included the potential to put public Wi-Fi in the designated parks. While on the other hand, an innovation center would be a physical location that would showcase innovation of the City of Dublin. The center would be expected to be co-developed by the City and altafiber. There are opportunities to use this to work within other developments, tie in the Beta District, the Intelligent Community Forum Institute, or other aspects of Connected Dublin. Project Funding The initial contribution amount by the City of Dublin is $5,900,000. Consistent with City policy, portions of the new fiber infrastructure will be required to utilize the Dublink fiber conduit system. In the event the costs of doing so change during the project, the impact to the cost proposal could be up to $1,200,000. Total potential cost is thus capped at $7,100,000. Per the agreement, altafiber will not receive payment until the fiber is constructed and available to be ordered by the customer. Recommendation Staff recommends adoption of Resolution 55-23, authorizing the City Manager to enter into a Master Network Agreement with altafiber for the Broadband To The Home Project. 1 MASTER NETWORK AGREEMENT THIS MASTER NETWORK AGREEMENT (“Agreement”) is made and entered into in Dublin, Ohio, as of the ____ day of _______________, 2023 (“Effective Date”), by and between CINCINNATI BELL EXTENDED TERRITORIES LLC dba altafiber, an Ohio limited liability company, with a place of business located at 221 East Fourth Street, Cincinnati, Ohio 45202, and its affiliates (collectively, “altafiber”), and the CITY OF DUBLIN , OHIO, an Ohio municipal corporation, with a place of business located at 5555 Perimeter Drive, Dublin, Ohio 43017, and its successors and assigns (“City”), (each a “Party” and collectively the “Parties”). WHEREAS, the City of Dublin has determined that the provision of High-Speed Broadband Services, as defined below, to residents and businesses is a critical public utility need that directly impacts the vitality and quality of life within the City; and WHEREAS, the COVID-19 pandemic has manifested the importance of High-Speed Broadband Services for employment, education, consumerism, telemedicine and other resident needs to successfully function and compete in today’s society; and WHEREAS, local governments across the country have recognized that the provision and delivery of High-Speed Broadband Services will require the intervention and partnership of local governments with private telecommunication providers to achieve delivery of high speed broadband service and ensure that no portion of the community is underserved or left behind; and WHEREAS, the City issued a request for proposals (“RFP”) (attached as Exhibit E) from internet service providers to deploy, operate, and maintain a broadband internet network, and using the published criteria, ranked altafiber as the top ranked proposer; WHEREAS, City accepted altafiber’s Response to the Request for Proposals and identified it as the strategic City partner to move forward with negotiations; and WHEREAS, altafiber has proposed a plan to extend its backbone fiber optic network to all Addressable Locations within the City Limits of Dublin (approximately 20,000) (“Service Area”), to provide High Speed Broadband Services to City residents and businesses (collectively, “Consumers”); and WHEREAS, the Parties have negotiated in good faith to develop acceptable terms to enter into a binding Agreement defining the objectives, duties, roles, and responsibilities of each party with respect to extending the backbone fiber network of altafiber to provide High Speed Broadband Services to the Consumers within the City of Dublin. NOW, THEREFORE, for and in consideration of the mutual benefits accruing to the Parties hereto, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. Network Extension Work. altafiber agrees to undertake the necessary design, construction, installation, maintenance and operation of equipment and infrastructure to extend its existing backbone fiber optic network to Consumers within the Service Area (“Network 2 Extension Work”). The proposed backbone fiber network will provide Consumers with High- Speed Broadband Services capable of provisioned symmetrical speeds of 10 Gigabit per second (Gbps) (“High-Speed Broadband Services”), subject to customer preferences. The Network Extension Work shall be built as described in Exhibit D. Both parties agree and understand that the backbone fiber network proposed will provide the fiber infrastructure to qualify Addressable Locations as either Fiber Qualified or Fiber Passed as defined in Exhibit C. 2. Term. Unless this Agreement is terminated in accordance with the provisions contained herein, or extended by mutual agreement of the parties, their successors or assigns, the Term of this Agreement shall begin on the Effective Date and continue until fifteen years after the Effective Date. 3. Completion Date. altafiber will use reasonable efforts to ensure all Addressable Locations are Fiber Passed within thirty-six (36) months and to substantially complete the Network Extension Work for all Addressable Locations within forty-eight (48) months, as further described in Exhibit A. Prior to the commencement of Network Extension Work, altafiber shall submit a proposed timeline for completion of the Network Extension Work, which shall include milestones based on Door Release Dates (“Timeline”). “Door Release Date” shall be defined as the date upon which Addressable Locations become Fiber Qualified or Fiber Passed as defined in Exhibit C. 4. Project Performance and Metrics. altafiber will develop engineering plans, infrastructure designs, timelines, performance goals, and other project implementation information (collectively, “Project Information”). altafiber will provide Project Information to City prior to the Network Extension Work. Once Network Extension Work has commenced, altafiber shall provide City with quarterly performance updates and metrics related to Project Information (“Metrics”). Metrics shall be reported electronically and shall include, but are not limited to, data on penetration rates and buildout progress. altafiber agrees to meet with City on a quarterly basis to discuss the Metrics and set performance goals for the following quarter as required under Section 6 of this Agreement. 5. Contribution Amount. In consideration of the Network Extension Work, City shall pay altafiber Five Million Nine Hundred Thousand Dollars ($5,900,000) (the “Contribution Amount”), which has a value of Two Hundred Ninety-Five Dollars ($295) per Addressable Location. City shall pay altafiber in periodic installments in accordance with the payment schedule attached hereto as Exhibit A (the “Payment Schedule”). In the event that the rate Dublink Development Company LLC charges altafiber does not revert to the rates set forth in the December 14, 1998 agreement as defined in Exhibit H between the City and the Dublink Development Company LLC, City shall supplement the Contribution Amount by One Million Two Hundred Thousand Dollars ($1.2 million) (“Supplemental Amount”). The Supplemental Amount shall be paid by adding the Supplemental Amount pro rata to the Payment Schedule, which has a value of Sixty Dollars ($60) per Addressable Location. The Contribution Amount and Supplemental Amount shall constitute an all-inclusive, total sum for Network Extension Work provided by altafiber under the terms of this Agreement, subject to customary availability and deployment in the market, as well as applicable legal and regulatory requirements. Payments of the Contribution Amount and Supplemental Amount shall be calculated based upon the payment milestones achieved during the period set forth in Exhibit A. After completion of each milestone, altafiber 3 shall prepare a written invoice and submit same to City together with any other supporting documentation reasonably requested by City (collectively, the “Payment Application”). Within thirty (30) days after City’s receipt of each Payment Application, City will pay portions of the Contribution Amount and Supplemental Amount then due with immediately available funds by ACH payment or other mutually agreeable payment method. In the event that City disputes any amount set forth on a Payment Application, City shall notify altafiber in writing setting forth the amount withheld from such Payment Application and provide a reasonable description of the rationale for the withholding. altafiber shall promptly cure the underlying cause for any such withholding and, upon curing such underlying cause, may include amounts of the Contribution Amount with respect thereto with the next Payment Application, unless otherwise agreed upon by the Parties in writing. 6. Responsibilities of altafiber. altafiber represents and warrants that it shall: (a) perform the Network Extension Work to ensure that all Addressable Locations identified in the Service Area are Fiber Passed or Fiber Qualified and in accordance with Exhibit D; (b) provide an experienced and able management team to design, build, operate, and maintain the proposed Network Extension Work and resulting Network; (c) perform the Network Extension Work in a safe and professional workman-like manner and in accordance with all applicable federal, state, county, and municipal laws, ordinances, orders, rules, and regulations in effect on the date hereof; (d) take reasonable precautions to protect the persons and property of others on or adjacent to Network Extension Work sites, either in public right of way or recorded utility easements, from damages, loss, injury, interference, or nuisance resulting from the Network Extension Work and to restore any property areas to a condition materially consistent with the condition immediately prior to the Network Extension Work and/or in compliance with any applicable Franchise Agreement. In case of any disturbance of pavement (whether concrete, asphalt or other surface material), curb, sidewalk, driveway, apron or other surfacing, altafiber shall, at its own cost and expense, and in a timely manner, replace and restore all pavement, sidewalk, driveway, landscaping, or surface of any street disturbed, in as good condition as before said work was commenced and in accordance with generally applicable standards for such work. In case of any disturbance of grass or topsoil, altafiber shall, at its own cost and expense, and in a timely manner, provide seed and straw to all areas disturbed to reasonably restore the grass or topsoil to as good condition as before said work was commenced and in accordance with generally applicable standards for such work. altafiber shall comply with City’s property and street restoration standards, and all applicable ordinances, regulations and applications as set forth collectively in Exhibit F; (e) utilize care when working in areas that contain irrigation systems and dog fences. altafiber will repair damage to marked irrigation systems and dog fences at its own expense. altafiber will repair damage to irrigation systems within 48 hours of notice to altafiber and damage to dog fences by the end of the same working day if possible, and at most, within 24 hours of notice to altafiber of damage. Irrigation systems and dog fences shall be repaired as close to 4 previous condition as possible; (f) obtain all necessary federal, state, county and municipal permits, licenses, and approvals prior to the commencement of the Network Extension Work and comply with City Ordinance Chapter 98 and regulations promulgated pursuant to Chapter 98 of the Dublin Codified Ordinances. Chapter 98 and attendant regulations are attached as Exhibit F; (g) enter into an agreement with the Dublink Development Corporation for use of the Dublink conduit facilities; (h) meet with City representatives as reasonably requested and coordinate access to worksites prior to commencement of the Network Extension Work; (i) pay for all services, labor, materials, and other costs and expenses incurred in connection with the Network Extension Work; (j) make financial investments to maintain and upgrade backbone fiber equipment and infrastructure throughout the Term of this Agreement and to provide services and service quality standards that are equal to or better than what altafiber provides in other jurisdictions in Ohio and surrounding states throughout the duration of the Term; (k) develop performance goals and metrics for completion of the Network Extension Work. altafiber shall provide to City confidential, on-line reports detailing Network Extension Work progress and accomplishment of performance goals on a quarterly basis, and include “as- built” digital mapping data in KMZ or Esri data formats, or other digital mapping data formats as such formats become available to altafiber. All “as-builts” and digital mapping data provided by altafiber shall be considered Confidential Information as defined in Section 13 – Confidentiality of this Agreement; (l) cause all of its contractors, subcontractors, representatives and agents performing the Network Extension Work to comply with all requirements of this Section 6, as applicable; (m) provide project closeout documentation to the City, including, but not limited to the Notice of Completion, upon completion of all Network Extension Work within the Service Area; (n) reasonably pursue and participate when economically feasible and operationally practicable in federal, state and private grant funding opportunities, at the reasonable request of and in conjunction with City; (o) provide mass market introductory rate packages for High-Speed Broadband Services that are the same or better to what altafiber currently offers to Consumers in the State of Ohio, and offer standard rate packages for High-Speed Broadband Services that are the same or better to what altafiber currently offers to Consumers in the State of Ohio during the Term of this Agreement; (p) provide City with network upgrade plans, including, but not limited to, updated technology paths, modems, Wi-Fi capabilities, XGS-GPON ONT’s, and network redundancy, as further described in Exhibit D, periodically and within a reasonable time after such technologies 5 become commonly and customarily available; (q) be the first completed Fiber High Speed Broadband service area of comparable size in the central Ohio region, including Franklin, Delaware and Union Counties, substantially completed by altafiber; and (r) negotiate in good faith with City to expand the Service Area upon notice from the City of annexation of contiguous property; and (s) notify City in the event of a sale of the backbone fiber optic network within the Service Area. altafiber agrees to discuss with City the purchase of the network in the event of a sale. (t) Notwithstanding the foregoing, City acknowledges that certain Addressable Locations, as defined in Exhibit C, may not have access to the backbone fiber constructed due to restrictions on accessing the units by property owners, excessive fee requirements of property owners, or other non-customary requirements of property owners to access the property units as required to extend the fiber infrastructure to deliver service. (u) The parties also acknowledge that areas within the Service Area may exist where the installation of backbone fiber and the provision of services hereunder may be practically impossible as a result of topography, geography, governmental regulation, and right of entry. altafiber acknowledges that City has informed altafiber that rock is commonly encountered within the Service Area and altafiber commits that it is investigating and accommodating such topographical conditions. If altafiber encounters subsurface or latent physical conditions differing materially from those investigated by altafiber or if unknown physical conditions of an unusual nature are discovered by altafiber, altafiber will promptly notify City. Upon notification, the City Engineer will investigate the conditions and if it is determined that the conditions materially differ and cause an increase or decrease the cost or time required for the Network Extension Work, the parties will negotiate in good faith to determine a feasible alternative and/or make an adjustment and modify the Agreement as necessary. The Engineer will notify altafiber of the determination whether or not an adjustment of the Agreement is warranted. 7. Responsibilities of City. City represents and warrants that it shall: (a) provide the Contribution Amount described in Section 5 of this Agreement to assist with altafiber’s Network Extension Work; (b) assist to expedite the permitting process, where possible and consistent with state and federal law, for use of public right of ways and zoning permits for the Network Extension Work and assist altafiber in acquiring such permits; (c) identify and consult with all applicable City stakeholders including the City Engineer, prior to execution of this Agreement; (d) provide altafiber with all City and City-specific ordinances, rules and regulations prior to commencement of Network Extension Work for review and comment by altafiber; (e) provide City-specific geospatial datasets, including parcel and address data to 6 altafiber free of charge; (f) assist altafiber in identifying and communicating with residential property owners, business property owners, and management firms of Condominium Owners’ Associations, Homeowners’ Associations, and Multi-Dwelling Units, regarding the Network Extension Work; (g) reasonably pursue and participate when economically feasible and operationally practicable in federal, state and private grant funding opportunities, at the reasonable request of and in conjunction with altafiber; (h) City Council hereby authorizes the City Manager to issue altafiber a general right-of- way permit pursuant to Section 98.04(c) of City Ordinance Chapter 98 as per Exhibit G; (i) As part of the City’s contribution for the Network Extension Work, City Council hereby authorizes the City Manager to waive all fees associated with this Agreement, except for the general right-of-way application fee of One Thousand Dollars ($1000) as set forth in Section 98.04(c) of City Ordinance Chapter 98; (j) renew all right-of-way permits associated with the Network Extension Work throughout the Term of this Agreement; and (k) provide sales and marketing support including, but not limited to: (a) City to provide an opportunity to bid or submit a proposal to altafiber for all commercial telecommunications and broadband Internet services that the City may need, (b) City to provide altafiber booth space and signage rights at all City events to altafiber, (c) City to partner with altafiber in an ongoing campaign to market the awareness of the partnership with altafiber in the community through City website, social media and other print and digital marketing vehicles and campaigns, and (d) collaborate with altafiber on a streamlined administrative process to the benefit of both altafiber and City while maintaining compliance with City Code of Ordinances Chapter 115, which includes (i) honoring altafiber employment background check in lieu of the required solicitors background check, and (ii) extending the validity of the solicitors license to a ninety (90) days period. 8. Business and Residential Customers. City acknowledges and agrees that altafiber shall offer for purchase High-Speed Broadband Services resulting from the Network Extension Work to all Consumers, regardless of income or credit-status. At its option, however, altafiber may elect to provide additional services to such Consumers. City will have no authority or responsibility for fielding customer inquiries, addressing customer concerns, or otherwise with respect to altafiber customers within the City. City will have no responsibility for network upgrade costs or other costs to maintain or enhance the provision of Services to such residential and/or business customers, beyond those defined in this Agreement under Network Extension Work. 9. Fiber for Municipal Use. As part of the Network Extension Work, and at no initial upfront capital cost to City, altafiber will allocate up to twelve (12) fibers within all “backbone” feeder fiber cables by altafiber for potential future use by City for governmental purposes (“Municipal Fiber”) up to 55 route miles. City must elect the number of fibers and fiber routes no later than July 1, 2024. City agrees that the Municipal Fiber shall be used for internal governmental use by the City and will not compete with altafiber’s service. In conjunction with altafiber granting the backbone fiber allocation for City use, altafiber and the City shall enter into 7 an Indefeasible Right of Use (IRU) agreement no later than July 1, 2024, for the allocated fiber, with a maximum annual cost of $95,000 to the City during the Term of this Agreement. Final cost of the annual maintenance will trued up by the City upon final determination of the amount of route miles utilized by the City of Dublin upon completion of the Network Extension Work at a rate of $12.00 per fiber per mile per month. 10. Innovation Center Funding or Unicity Smart City Funding. Upon City’s request, altafiber will collaborate with City to either create an Innovation Center located within the Service Area or provide Unicity Smart City Funding. (a) Innovation Center. altafiber shall enter into good faith negotiations with City for an Innovation Center sponsorship and co-marketing agreement whereby altafiber will invest an amount not to exceed Two Hundred Fifty Thousand Dollars ($250,000) (“Sponsorship Commitment”), in exchange for certain co-marketing services and commitments (“Sponsorship Benefits”). (i) Sponsorship Commitment. The Sponsorship Commitment shall include any agreed upon combination of cash, leasing fees for the Local Office space, and in-kind services for the Innovation Center which may include services such as (a) commercial Ethernet transport, (b) commercial managed Wi-Fi, and (c) consulting, professional services, and seminar hosting. In addition to the Sponsorship Commitment, altafiber will use reasonable efforts to design, construct and install fiber infrastructure to extend its backbone fiber optic network to serve the Innovation Center, provided that the Innovation Center property owner provides a right-of-entry and an unobstructed pathway for the fiber extension to the building. (ii) Sponsorship Benefits. The Sponsorship Benefits shall include any agreed upon combination of marketing and co-marketing commitments by the City which may include (a) co- sponsorship naming and signage rights to the Innovation Center, (b) print and digital marketing regarding the Innovation Center on the City website and social media, newsletters (print and/or email), (c) public relations campaign around the Innovation Center grand opening and “ribbon cutting”, and (d) City to fund a video advertisement about the Innovation Center that both the City and altafiber have rights to use in their own media and advertising campaigns. (b) Unicity Smart City Funding. Upon City’s request, altafiber will collaborate with City to identify opportunities for public Wi-Fi infrastructure improvements within City (“Unicity Smart City Opportunities”). Upon identification of Unicity Smart City Opportunities, altafiber shall provide City with funding in an amount not to exceed $275,000 for public Wi-Fi infrastructure improvements within the City (“Unicity Smart City Funding”). altafiber will undertake the necessary design, construction and installation of equipment and infrastructure to extend its backbone fiber optic network to account for the Unicity Smart City Opportunities. altafiber will use all reasonable efforts to implement Unicity Smart City Opportunities concurrently with the Network Extension Work. 11. Local Office. Within eighteen (18) months of Effective Date, altafiber shall establish a brick-and-mortar office available to Consumers located within the Service Area. 12. Ownership. altafiber shall retain sole ownership in its existing backbone fiber 8 network and any additions to the backbone fiber network as contemplated by the Network Extension Work and this Agreement. The entire fiber network will remain with altafiber, and City shall have no interest therein. If altafiber undergoes a change in ownership, substantial sale of assets, acquisition, or dissolution, it must provide notice in writing to City. 13. Confidentiality. Subject to the Ohio Public Records Act, and as lawfully permissible, the City and altafiber agree to keep confidential and protect against disclosure the provisions of this Agreement and any and all valuable or potentially valuable information, whether communicated in oral, written, electronic or other form prior to or after execution of this Agreement, including, but not limited to, customer information and financial, commercial, marketing, sales, technical, or scientific information (including without limitation all patents, copyrights, trademarks, service marks, trade names, trade dress, and applications relating to same, trade secrets, software, code, inventions, know-how, and similar information), and any and all other material, documents, and data related to the business activities of the other party (collectively, “Confidential Information”). Each party shall mark its respective Confidential Information as “Confidential.” Notwithstanding the foregoing, the Parties may disclose Confidential Information to their lawyers, accountants, other professional advisors, and lenders on a confidential basis, and as required by law, regulation or other legal rule or order. The City hereby covenants and agrees not to duplicate, use, or disclose, in whole or in part, any Confidential Information provided by altafiber without prior written consent from altafiber. City may disclose altafiber data related to the Network Extension Work to private or public entities for the sole purpose of applying for and/or securing funding or grants, provided that altafiber consents in writing, which consent shall not be unreasonably withheld or delayed. altafiber acknowledges that City is characterized as a public office under O.R.C. § 149.43(A)(1). Records in the possession of the City or retained by it are subject to the Ohio Public Records Act at O.R.C. § 149.43. City covenants and agrees that it will promptly notify altafiber of any public records request. altafiber will immediately assert and claim its rights to exclude from the City’s response to the request altafiber’s Response to the City’s RFP. City may provide the requesting party with redacted copies of altafiber’s Response to the City’s RFP. City will inform the requesting party that the redacted information is exempt from disclosure under the Public Records Act. In the event that the requesting party objects to the assertion of the exemption and proceeds to challenge the same according to O.R.C. § 149.43(C), City covenants and agrees that it will inform altafiber of the challenge. In the event of a challenge, altafiber will defend the exemption in any and all administrative and judicial proceedings. 14. Indemnification. altafiber covenants and agrees at its expense to pay and to indemnify and save the City, and their officers and agents (the “Indemnitees”) harmless of, from and against, any and all claims, damages, demands, expenses (including, without limitation, reasonable attorneys’ fees) and liabilities relating to bodily injury or property damage resulting directly or indirectly from altafiber’s (and/or any affiliate's thereof) performance pursuant to this Agreement or failure to perform pursuant to this Agreement unless such claims, damages, demands, expenses or liabilities arise by reason of the negligent act or omission of the City, or other Indemnitees. However, nothing contained in this Agreement shall be construed as creating either a joint venture or partnership relationship between the City and altafiber or any affiliate thereof. 15. Insurance. altafiber shall maintain insurance in accordance with the insurance requirements attached hereto as Exhibit B. Prior to performing any Network Extension Work, 9 and at any time upon the request of City, altafiber shall provide City with certificates evidencing compliance with all such insurance requirements. 16. Event of Default; Remedies. In the event that either party breaches a material provision of this Agreement, which shall constitute an “Event of Default” under this Agreement, the non-defaulting party shall give written notice to the defaulting party setting forth the nature of the default (“Notice of Default”). The defaulting party will have thirty (30) days following receipt of the Notice of Default to cure such Event of Default. If the defaulting party fails to cure the Event of Default within the cure period (which shall be extended in cases where the default is of the nature that it cannot reasonably be cured within such 30-day period), the non-defaulting party may terminate this Agreement for cause under this Section by written notice to the other party and may exercise its legal rights and remedies as a result of such Event of Default. During the term of this Agreement, each party, and their successors and assigns, has the right to enforce this Agreement and any provisions in law and or equity by seeking monetary damages, injunction, specific performance, or other legal and equitable relief without prejudice to any other rights or remedies such party may have at law or in equity for breach of this Agreement. 17. Breach of Service. In addition to any other legal right or remedy available under the Agreement for breach thereof, if altafiber ceases to provide High-Speed Broadband Service as defined in Section 1 of this Agreement to Fiber-Qualified Addressable Locations during the term of the Agreement, or fails to meet Metrics, altafiber will provide compensation equal to a percentage of the Contribution Amount. The percentage of the Contribution Amount owed to the City by altafiber shall be based on the number of years that this Agreement has been in effect, as follows: Years from Effective Date Percentage of Contribution Amount Less than 1 Contribution Amount 1 Contribution Amount 2 Contribution Amount 3 Contribution Amount 4 11/15 of Contribution Amount 5 10/15 of Contribution Amount 6 9/15 of Contribution Amount 7 8/15 of Contribution Amount 8 7/15 of Contribution Amount 9 6/15 of Contribution Amount 10 10 5/15 of Contribution Amount 11 4/15 of Contribution Amount 12 3/15 of Contribution Amount 13 2/15 of Contribution Amount 14 1/15 of Contribution Amount 15 0/15 of Contribution Amount 18. Successors and Assigns; Assignment. This Agreement will be binding upon and inure to the benefit of the Parties hereto and their respective successors and assigns. altafiber may assign this Agreement with prior written approval from the City during the Network Extension Work construction phase of this Agreement. The City’s approval shall not be unreasonably withheld, and the City shall submit said approval to altafiber within ten (10) business days after altafiber’s written notice to the City. Upon the City's receipt of the Notice of Completion of the Network Extension Work and for the remainder of the Term, altafiber may assign this Agreement upon prior written notice to the City. Successors and assigns of altafiber shall be bound by and comply with all provisions of this Agreement. Notwithstanding anything to the contrary in this Section, a sale, acquisition or merger of altafiber’s parent company will not require prior written approval of the City. 19. Use of Either Party’s Name; Joint Marketing. City acknowledges that all goodwill associated with altafiber’s name and logo are, and shall remain, the sole property of altafiber and no rights are conferred upon City to use the same without the prior written consent of altafiber, which consent shall not be unreasonably withheld, conditioned or delayed. altafiber acknowledges that all goodwill associated with City’s name and logo are, and shall remain, the sole property of City and no rights are conferred upon altafiber to use the same without the prior written consent of City, which consent shall not be unreasonably withheld, conditioned or delayed. The Parties shall cooperate in joint marketing efforts utilizing the marketing resources and goodwill of each party to promote the High-Speed Broadband Services made available to Consumers as a result of the Network Extension Work. Except as otherwise mutually agreed to by the Parties, each party shall bear its own expenses without contribution in connection with such joint marketing efforts. 20. Authority. City and altafiber represent and warrant to the other that it is not, by law or by agreement with others, prohibited from entering into this Agreement, that each party has obtained any necessary approvals or consents in advance of executing this Agreement, and that the persons executing this Agreement on behalf of each party are authorized to execute and deliver this Agreement on behalf of such party. 21. Severability. If a court of competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable for any reason, such invalidity or unenforceability shall not invalidate or render unenforceable the remainder of this Agreement; and, unless such construction would be unreasonable, this Agreement shall be construed as if not containing the invalid or 11 unenforceable provision and the rights and obligations of each party shall be construed and enforced accordingly. The Parties shall negotiate in good faith to amend this Agreement, to the extent necessary, to replace any unenforceable provision so as to give effect to the Parties’ intent. 22. Entire Agreement. This Agreement and the Exhibits and Schedules referred to herein constitute the entire agreement between the Parties concerning the subject matter hereof. All prior agreements, representations, statements, negotiations, understandings, proposals, and undertakings, oral or written, with respect to the subject matter hereof are superseded and replaced by this Agreement. 23. Incorporation by Reference. Each of the Exhibits attached hereto is expressly incorporated herein and made a part of this Agreement, and all references to this Agreement shall include the exhibits hereto. In the event of any inconsistency between this Agreement and the exhibits attached hereto, this Agreement (without reference to such exhibits) shall govern. 24. Execution in Counterparts. This Agreement may be executed and delivered in any number of counterparts each of which so constituted and delivered shall be deemed to be an original and all of which shall constitute one and the same instrument. 25. Notice. Every notice required or permitted hereunder must be in writing and is deemed to have been duly given if personally delivered or mailed by certified or registered mail, return receipt requested, to the party’s address set forth below. Notice is effective upon receipt or refusal as indicated by the return receipt. Either party may change its address for the purpose of notice hereunder by providing the other party with notice of the new address. Notice to Dublin: City of Dublin, Ohio 5555 Perimeter Drive Dublin, Ohio 43017 Attn: City Manager With copy to: Ice Miller LLP Attn: Gregory Dunn Special Counsel for City of Dublin 250 West Street, Suite #700 Columbus, Ohio 43215 Office: (614) 462-5033 26. Interpretation. All paragraph headings and other titles and captions herein are for convenience only, do not form a substantive part of this Agreement, and shall not restrict or enlarge any substantive provisions hereof or thereof. 27. Survival. The provisions of Sections 12, 13, 14, 15, and 18 will survive termination Notice to altafiber: altafiber 221 East Fourth Street – 103-1080 Cincinnati, Ohio 45202 Attn: Legal Department 12 of this Agreement. 28. Governing Law. This Agreement is governed by and construed under the laws of the State of Ohio, without regard to conflict of laws principles. 29. Venue. The exclusive venue for all cases or disputes related to or arising out of this Agreement shall attorn to the appropriate state or federal courts of Franklin County, Ohio. 30. Amendment. This Agreement may only be modified by a written amendment to this Agreement signed by the Parties hereto. 31. No Third-Party Beneficiaries. This Agreement shall be deemed to be for the benefit solely of the parties hereto and shall not be deemed to be for the benefit of any third party. [Signature page follows] 13 IN WITNESS WHEREOF, the Parties have executed and delivered this Agreement as of the Effective Date. City: CITY OF DUBLIN, OHIO An Ohio municipal corporation By: Name: Title: altafiber: CINCINNATI BELL EXTENDED TERRITORIES LLC d/b/a altafiber An Ohio limited liability company By: Name: Title: A-1 Exhibit A Payment Schedule Both parties have reviewed the Addressable Location data provided by altafiber and agree that there are approximately twenty-thousand (20,000) Addressable Locations within the City of Dublin. altafiber will provide High-Speed Broadband Services to Addressable Locations defined in Exhibit C as Single Family Units (SFU) with thirty-six (36) months and Multiple Dwelling Units (MDU) within forty-eight (48) months of the Effective Date. As defined previously in Section 5 – Contribution Amount, both parties agree to a total not to exceed the Contribution Amount of Five Million Nine Hundred Thousand Dollars ($5,900,000) (the “Contribution Amount”), or Two Hundred and Ninety-Five Dollars ($295) per Addressable Location for 20,000 Addressable Locations. In addition, if applicable, both parties agree that a Supplemental Amount as defined in Section 5 – Contribution Amount shall be paid in addition to the Contribution Amount equal to One Million Two Hundred Thousand Dollars ($1,200,000) (the “Supplemental Amount”) or Sixty Dollars ($60) per Addressable Location for 20,000 Addressable Locations. The MDU Addressable Locations will qualify as either “Fiber Passed” or “Fiber Qualified” as defined in Exhibit C. The parties acknowledge and agree that the unique nature of MDUs will likely prohibit altafiber from extending backbone fiber facilities to all identified MDU Addressable Locations. altafiber cannot guarantee installation of its backbone fiber for Addressable Locations where practicably impossible. Under the proposed Payment Schedule provided below, the period covered by the first Payment Application will begin on the first date of the month immediately following the Effective Date of this Agreement. Thereafter, altafiber will submit quarterly Payment Applications to the City upon the expiration of each quarterly period. The basis of the Payment Application shall be the number of Addressable Locations which have been Fiber Qualified or Fiber Passed within the Payment Application period at Two Hundred Ninety Five Dollars ($295) per Addressable Location for the Contribution Amount, and if applicable Sixty Dollars ($60) per Addressable Location for the Supplemental Amount. Within thirty (30) days after City’s receipt of each Payment Application, City will pay undisputed portions of the Contribution Amount and Supplemental Amount then due with immediately available funds by ACH payment or other mutually agreeable payment method. In the event that City disputes any amount set forth on a Payment Application, City shall notify altafiber in writing identifying the amount withheld from such Payment Application and a reasonable description of the rationale for the withholding. altafiber shall promptly cure the underlying cause for any such withholding and, upon curing such underlying cause, may include withheld amounts of the Contribution Amount and Supplemental Amount with the next Payment Application. Upon altafiber’s determination of completion of all Network Extension Work, altafiber shall submit to City a Notice of Completion. Following receipt of the Notice of Completion, City shall pay to altafiber the remainder of the Contribution Amount and Supplemental Amount, if applicable. The payment amount shall be based upon the Contribution Amount and the Supplemental Amount, less the amount provided to altafiber in previous Payment Applications, up to and including Seven Million One Hundred Thousand Dollars ($7,100,000). City will pay the remainder of the Contribution Amount and Supplemental Amount with immediately available A-2 funds by ACH payment or other mutually agreeable payment method within thirty days of receipt of the Notice of Completion. Example: In the first Payment Period altafiber completes 1,000 SFU addressable locations and 100 MDU addressable locations. The Payment Application would be calculated as follows: Contribution Amount: 1,100 x $295 = $324,500 for Payment Application No. 1. Supplemental Amount: 1,100 x $60 = $66,000 for Payment Application No. 1 Total Payment Amount: $324,500 + $66,000 = $390,500 for Payment Application No. 1. Below is the proposed Payment Application Schedule for this Agreement: Payment Application Number Period Covered by Payment Application 1 0-90 days 2 91-180 days 3 181-270 days 4 271-365 days 5 366-450 days 6 451-540 days 7 541-630 days 8 631-730 days 9 731-810 days 10 811-900 days 11 901-990 days 12 991-1095 days B-1 Exhibit B Insurance Requirements 1. Except as otherwise stated below, altafiber shall maintain the following insurance for the duration of this Agreement and at all times when performing Network Extension Work: (a) Commercial General Liability insurance, reasonably equivalent to the latest filed and approved ISO CG 00 01 coverage form, with commercially reasonable endorsements, in an amount not less than one million dollars ($1,000,000) for bodily injury and property damage per occurrence, two million dollars ($2,000,000) products/completed operations aggregate and two million dollars ($2,000,000) general aggregate. Products/completed operations shall be maintained for the applicable statute of limitations. (b) Worker’s Compensation insurance in accordance with applicable state law where the Network Extension Work is performed. (c) Employers Liability insurance in an amount of not less than $1,000,000 each accident, $1,000,000 each employee by disease and $1,000,000 policy limit by disease. (d) Business Automobile insurance with combined single limit of not less than $1,000,000 each accident. (e) Umbrella/Excess Liability insurance following the form of the Commercial General Liability, Business Automobile Liability and Employers Liability insurance policies in an amount of not less than $5,000,000 per occurrence and $5,000,000 general aggregate. 2. All insurance policies required hereunder shall be written by companies with an A. M. Best Financial rating or its equivalent of “A” or better that are qualified to conduct business in the state(s) where the Network Extension Work is performed. All policies must be primary with respect to the Indemnitees and contain a waiver any rights of subrogation in favor of the Indemnitees. The Commercial General Liability, Business Automobile and Umbrella/Excess liability policies shall include the Indemnitees as additional insureds. altafiber and City acknowledge that altafiber may retain, self-insure or maintain deductibles in an amount of not more than $2,500,000 per occurrence. C-1 Exhibit C altafiber Network Qualification Definitions As used in this Agreement, an “Addressable Location” is defined as a location within the City in which there is an existing Delivery Point Validation (DPV) verified address, a non-DPV verified address location in which altafiber service has existed in the past, or a location in which there is a potential for the requirement to deliver High-Speed Broadband. As used in this Agreement, “Delivery Point Validation” (DPV) is a form of address validation designed by the USPS to ensure that an address can receive mail. USPS address reference data set includes DPV data. A delivery point is a unique mailbox recognized by the postal system. As used in this Agreement, a “Single Family Unit” (SFU) is defined as a location within the City, either residential or business or combination of the two, containing less than five units within an addressable location and does not typically require a Right of Entry (ROE) agreement with the property owner. A SFU addressable location is fed off of the backbone fiber with either an aerial fiber service drop or direct buried fiber service drop to addressable residential and business locations. As used in this Agreement, a “Multi Dwelling Unit” (MDU) is defined as a location within the City, either residential or business or combination of the two, containing five or more units within an addressable location and requires a Right of Entry (ROE) agreement with the property owner, or any addressable business location that has a direct buried or underground service feed at the time of the Network Extension Work. A MDU addressable location is fed off of the backbone fiber with either an aerial fiber cable, direct buried fiber cable, or underground fiber cable placed in conduit, to the addressable location. Additionally, addressable MDU locations typically require altafiber to install additional inside wiring facilities to each MDU location. As used within the Agreement, “Fiber Qualified” shall mean backbone fiber has been installed within the road right-of-way and/or the private property equivalent at or adjacent to the Consumer location, as applicable, such that the Consumer location is capable of receiving High-Speed Broadband Services with the provisioning of a so-called aerial fiber service drop or direct buried fiber service drop to an addressable residential or business location by altafiber, but without further Network Extension Work or other construction related activities. As defined above, SFU addressable locations are typically “Fiber Qualified” once the necessary Network Extension work has been completed. For addressable MDU locations, the installation of the inside wiring fiber drop is not installed until a high-speed internet service order is initiated by the customer. As used within the Agreement, “Fiber Passed” shall mean backbone fiber has been installed within the road right-of-way and/or the private property equivalent at or adjacent to the Consumer location, as applicable, such that the Consumer location is capable of receiving High-Speed Broadband Services with additional Network Extension Work. The additional Network Extension Work for a “Fiber Passed” location is not considered to be backbone fiber extension, and is subject C-2 to all customary special construction charges, ROE Agreements, and any other conditions that need to be provided by the end user customer outside of this Agreement. Examples of scenarios that may cause an “Addressable Location” to be qualified as “Fiber Passed” at the completion of the backbone fiber construction. • Any addressable location, residential, or business, or a combination of the two containing five or more units within a single structure. • Any addressable MDU location, residential or business, requiring a Right of Entry Agreement (ROE) with the property owner. • Any addressable business location that has a direct buried or underground service feed at the time of the Network Extension Work. D-1 Confidential Information – Not for Public Disclosure per O.R.C. §§ 1333.61-69. Exhibit D altafiber Technology Deployment Fiber Serving Area Layout & Backbone Fiber D-2 Confidential Information – Not for Public Disclosure per O.R.C. §§ 1333.61-69. Core Network Design – Data Center D-3 Confidential Information – Not for Public Disclosure per O.R.C. §§ 1333.61-69. altafiber commits to the following technology requirements for the proposed fiber-to-the- premise (FTTP) deployment within the City of Dublin Service Area: 1. An XGS-PON fiber deployment utilizing Nokia (or equivalent) FTTP equipment, capable of provisioned speeds of symmetrical 10 Gbps. 2. Furnish and install approximately 1,400,000 feet of feeder and distribution fiber cable to support the FTTP deployment. (a) The primary installation method for the proposed fiber cable will be underground directional boring. (b) Approximately 131,000 feet of the proposed fiber cable will be installed in the existing Dublink conduit facilities. 3. Furnish and install approximately 91 Fiber Distribution Hubs (FDH) across the Service Area to support the FTTP deployment. (a) Feeder and distribution fiber, and FDH facilities shall allocate one (1) fiber per identified residential address and two (2) fibers per identified business address. (b) Feeder and distribution fiber and FDH facilities shall initially be designed at a maximum utilization rate of 70-80% allowing for future growth and maintenance activities. 4. Core Data Equipment and Optical Line Terminals (OLT’s) will reside in a single data center within the Service Area. altafiber reserves the right to make the final determination as to which Data Center is utilized for the Network Agreement. (a) Final equipment deployment configuration and equipment manufacturer is subject to final engineering requirements, and subject to change. All deployed equipment configurations and manufacturers supporting the Service Area shall be consistent with altafiber’s existing carrier grade network deployments. 5. Core Network Equipment will be supported by diverse 100Gx100G links back altafiber’s existing data core networks. 0127206.0607984 1197984.7 E-1 Exhibit E City of Dublin Fiber to the Home RFP [RFP to be inserted.] F-1 Exhibit F City of Dublin Installation Requirements and Applicable Ordinances, Regulations and Applications [Chapter 98, ROW Ordinances, and Regulations to be inserted here.] G-1 Exhibit G City of Dublin General Right-of-Way Application [General Right of Way Application to be inserted here.] H-1 Exhibit H City of Dublin – December 1998 Dublink Agreement [Agreement to be inserted here.] 0127206.0607984 1197984.7