HomeMy WebLinkAbout06-27-16 C14. Addendum - Boz Fiber Lease Agreement
Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: David Fine, Economic Development Specialist Scott McMahan, Information Technology Manager
SUBJECT: Authorize the City Manager to sign First Addendum to Dark Fiber Lease Agreement with Bozeman Fiber
MEETING DATE: June 27, 2016 AGENDA ITEM TYPE: Consent RECOMMENDATION: Authorize the City Manager to sign the First Addendum to the Dark Fiber Lease Agreement. BACKGROUND: On February 8, 2016, the City entered into a dark fiber lease agreement with Bozeman Fiber that was scheduled to begin on June 27, 2016. Bozeman Fiber planned to license City conduit to reach a number of locations prescribed in this agreement. Due to delays in the construction of City conduit caused by issues obtaining Montana Department of Transportation (MDT) encroachment permits and other issues, City conduit was not available on schedule to meet the initially proposed deadline. In addition, not all of the aerial fiber was complete to reach school locations in south Bozeman. The proposed addendum to the contract provides a one month extension to the deadline. The City and the Bozeman Public Schools can continue to receive service from their current provider on a month-to-month basis.
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FISCAL EFFECTS: The City will continue to purchase fiber connectivity at several locations from Charter Communications on a month-to-month basis at the previous rate of $625 per month. Bozeman Fiber will not be charging for any City locations for the month of July. Since the City planned to retain redundant service through July to ensure a smooth transition, this addendum may allow the City to save the cost of redundant service at five locations with existing fiber service for a potential savings of $2,780.
ATTACHMENTS: First Addendum to Dark Fiber Lease Agreement with Bozeman Fiber Letter from Bozeman Fiber, Re: Bozeman Fiber Dark Fiber for City and Schools LINKS: Dark Fiber Lease Agreement between the City of Bozeman and Bozeman Fiber
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First Addendum to Fiber Lease Agreement Page 1 of 2
FIRST ADDENDUM TO
DARK FIBER LEASE AGREEMENT THIS FIRST ADDENDUM TO THE DARK FIBER LEASE AGREEMENT
(“Agreement”) is made on ___________2016 (the “Effective Date”), by and between the
City of Bozeman, a self governing municipal corporation organized and existing under its
Charter and laws of the State of Montana with its principal offices located at 121 North Rouse,
Bozeman, MT (“City” or “Lessee”) and Bozeman Fiber, a Montana non-profit corporation with its principal offices located at 2000 Commerce Way, Bozeman, MT (“BFI” or “Lessor”). City
and BFI are at times collectively referred to hereinafter as the “Parties” or individually as
“Party.”
In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the Parties hereto agree as follows:
1. Extension of time to provide access to dark fiber. Section 7.1 of the
Agreement is replaced in its entirety with the following:
BFI will provide access to dark fiber at initial City and School Locations (as set
forth in Exhibit A) no later than July 31, 2016. For purposes of this Section,
“provide access” means the Acceptance Date pursuant to 4.5. City shall have the
right to terminate the Fiber Lease as to a particular location without penalty if
this contingency is not met. Notwithstanding the foregoing, a failure to meet this
contingency shall not be deemed a material breach of this Agreement, and City
shall have no right in such case to pursue remedies for default described in
Section 8.2.
2. Agreement still valid. All remaining terms and provisions of the Agreement
remain valid.
**** END OF AGREEMENT EXCEPT FOR SIGNATURES ****
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First Addendum to Fiber Lease Agreement Page 2 of 2
CITY OF BOZEMAN: BOZEMAN FIBER:
By: By:
Chris Kukulski
Print Name:
Title: City Manager Title:
Date: Date:
APPROVED AS TO FORM
By: _______________________________ Greg Sullivan, City Attorney
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First Addendum to Fiber Lease Agreement
Exhibit A
EXHIBIT A
City of Bozeman
1. City Hall 121 N. Rouse Ave
2. Professional Building 20 East Olive St
3. Bozeman Public Library 626 East Main St
4. Law and Justice Center (City) 615 S. 16th Ave (Collapsed Ring) 5. Bridger Park Garage, 26 East Mendenhall Street
6. Fire 3 and 911 1705 Vaquero Pkwy (Collapsed Ring)
Bozeman Public Schools
1. Bozeman High School 205 North 11th Ave 2. Chief Joseph Middle School 4255 Kimberwicke (Collapsed Ring)
3. Sacajawea Middle School 3525 South 3rd Ave. (Collapsed Ring)
4. Emily Dickinson Elementary School 2435 Annie Street
5. Hawthorne Elementary School 114 North Rouse
6. Hyalite Elementary School 3600 West Babcock 7. Irving Elementary School 611 South 8th
8. Longfellow Elementary School 516 South Tracy
9. Meadowlark Elementary School 4415 Durston Road
10.Morning Star Elementary School 830 Arnold Street (Collapsed Ring)
11.Whittier Elementary School 511 North 5th 12.Willson Building 404 West Main Street
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