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HomeMy WebLinkAbout20- Amendment 1 to Dark Fiber Lease Agreement - Bozeman Fiber AMENDMENT#1 TO DARK FIBER LEASE AGREEMENT BETWEEN THE CITY OF BOZEMAN AND BOZEMAN FIBER This Amendment#1 to the Dark Fiber Lease Agreement dated February 8, 2016("Agreement") is made and entered into by and between the City of Bozeman, Montana, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as "City," and Bozeman Fiber, a Montana nonprofit corporation with its principal offices located at 2000 Commerce Way, Bozeman, MT("BFI"). City and BFI are collectively referred to as the "Parties." In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof is hereby acknowledged, the Parties agree to amend the Agreement as follows. RECITALS 1. Bozeman Fiber(BFI), in accordance with the Bozeman Fiber Master Plan and Feasibility Study, is developing a community fiber optic network, in which BFI will be able to make available unactivated ("dark") fiber optic network strands for use and benefit of others. 2. The City has received dark fiber services under the February 8, 2016 Agreement, and made annual payment in advance to BFI under Section 4.3.1, Lease Fee on July 15Y of each year since 2016. The City's annual payment is for 7 strands of dark fiber,totaling$46,704. 3. In exchange for a 5% prepayment discount, Bozeman Fiber has requested that 40%of the City's annual payment due on July 1, 2020 be paid to BFI by March 8,2020. The amount to be prepaid is$18,685, less prepayment discount of$934.25, totaling$17,750.75. The payment would be approximately 120 days in advance of the stated contract due date. The remainder amount of $28,020 for the year would be paid to BFI on July 1, 2020. 4. Bozeman Fiber has requested that any advance payments received by the City under the Interlocal Agreement with Bozeman School District#7 for dark fiber services, dated August 24, 2015, also be paid to BFI upon receipt. NOW, THEREFORE, the Parties agree: Amendment#1 to Dark Fiber Lease Agreement 1. The City of Bozeman shall advance to Bozeman Fiber(BFI) 40%of the City's annual payment due on July 1, 2020 be paid on March 1,2020. After prepayment discount of 5%,this amounts to $17.750.75 being paid approximately 120 days in advance of the stated contract due date. The remainder amount of$28,022 for the year will be paid to BFI on July 1, 2020. 2. The City of Bozeman shall immediately forward any advance payments it may receive prior to July 1, 2020 under the Interlocal Agreement with Bozeman School District#7 for dark fiber services, dated August 24, 2015, to BFI. 3. No other sections or provisions of the Dark Fiber Lease Agreement signed on February 8, 2016, are modified by this Amendment. All remaining terms and provisions of the Agreement remain valid. IN WITNESS WHEREOF, the Parties have executed this Amendment as of the�/�day of , 2020. CITY OF BOZEMAN BOZEMAN FIBER, INC k4 loe (� ByLL By Dennis Taylor, Interim ty Manager Print Name: 4 a— Title: L(, APPROV D AS TO FORM f By Greg Sullivan, Bozeman City Attorney Amendment#1 to Dark Fiber Lease Agreement