HomeMy WebLinkAboutMarch 16, 2000 (2)Please Note: Our plrmre numbers have changed. The new general number is 706-3600.
MEETING OE
THE TF,LECOMMUNICATIONS COMMISSION
7:00 PM, THURSDAY, MARCH I6, 2000
CITY HALL CONI'ERENCE ROOM
Please contact Shelley at 706-3614 if you are enable to attend.
AGENDA:
1. Call to Order
2. Roll Call
3. Approval of the Minutes of the Meeting of February 17,2000
4. Old Business
a. Channel Check
b. Correspondence Log and Company Follow Up on Complaints-
c. Merger Update Brochures for Feb. 2000
d. Other Old Business
5. New Business
a. Presentation on Metrieom's Richochet System and Use of Right of Way Agreement
b. MediaOne's Notification to Customers to Convert from Old Packages to New Packages
c. 1999 Annual Report
d. Subscriber Survey
e. Other New Business
6. Reports
a. Report of Commissioners Assigned to Access Channels:
Educational Access--Dennis 5troik; Library Access-Ruth Graham; Religious Access- ;Government Access--Ken Henke;
Public Access--Reuben Ruen
b. Report of MediaOne-
February 2000 Reports
--Subscriber Statistics
--Telephone Statistics
--Programming Statistics
--Programs Produced
--Installation and Service Activity Report
--Current Channel Line Up and Service Charges
c. Report of the Cable Attorney
d. Report of the Special Projects Coordinator
7. Adjournment
Attachments
THE MINUTES OF THE
TELECOMMUNICATIONS COMMISSION
FROM
THURSDAY, FEBRUARY 17, 2000
The meeting was called to order at 7:03 p.m. by Dennis Stroik, Chairperson.
ROLL CALL: Commission Members: Dennis Sh•oik, Ken Henkc, Robert Buboltz, Dan Swee, and Reuben
Ruen
City Representative:
Cable TV Representative:
Legal Counsel:
APPROVAL OP' MINUTES
Linda Magee
Kathi Donnelly-Cohen
Steve Guzzetta
Motion by Ken Henke , seconded by Bob Buboltz, to approve the minutes from the meeting of October 21, 1999. All
ayes,
OLD BUSINESS
A. Channel Check
Everything checked outok.
B. Correspondence Log and Complaint Follow Up.
Complaint #128-Lawrence Wodziak-The cable box near street was open. The company sent someone out to
secure it.
Complaint #129-Leon Osbaldo-He was charged twice for installation of service by mistake. Kathi sent him a
letter to inform him he would be credited $50 for the installation charges.
Complaint #130-Andy Gerda-Complained that he had no cable service on 12/22/99. Kathi reported his cable
service was out less than one hour, the problem was fixed, and he was credited for the interruption in his service.
Complaint #131-Tammy Peterson-Was told the city was responsible for recent increase in rates. Kathi was
unable to respond to customer due to no address or phone number listed on complaint form. She stated customer
service reps are not indicating that cities are raising rates. She is unable to follow up on this due to limited
information.
Complaint #132-Douglas Widstrom-Complained of another rate increase making cable service unaffordable.
They do not consider the cable service and programming to be a "tremendous value". Kathi explained in a letter
that system upgrades have been made to provide additional programming and services. These upgrades were
necessary to provide customers with the variety of services they want for today's constantly advancing
technology. She also explained it is less expensive to upgrade everyone's services than to provide channel by
channel service to individual households, At this time it is not technically or economically feasible to do this.
Reuben pointed out that Dish Network is offering ala carte service. However, he doesn't know if there is a
minimum service you have to subscribe to first in order to receive additional programming ala carte. He will
check into this.
Complaint #133-Craig Larson-He has had intermittent reception problems for several months. When he called
for service, he was told it would be a weak. A call was made to his home where they put in a new drop and
balanced the distribution amps. He is now satisfied.
TELECOMMUNICATIONS COMMISSION
MINUTES OF FEBRUARY 17, 2000
PAGE 2
Complaint #134-Darlene Buboltz-Moved to a new address and had cable service installed. The price was not the
same as what she had previously paid. There is some confusion regarding her bill due to installation fees,
services were changed (her previous package was grandfathered in until a change was made), a rate increase
effective Jan, 151, and no payments being received on this account. Kathi sent her a letter and a copy of her
account history explaining the current charges due MediaOne.
Kathi reported that letters are going out to people on old packages who have been grandfathered in until now. 80
different letters have been prepared due to three company mergers that have left quite a few people in old service
packages. They will have to choose a package currently being offered so billing of the services can be more
consistent.
Complaint #135-Mae Lyons-She called wanting Universal Service. She has had Universal service since 1998.
She also has had customer education regarding this service. However, she was not happy with her reception, so
she wanted it disconnected. When the service tech went out there, reception was good so she still has the service.
C. Notification of Rate Refund
Notification of the FCC Ruling on an old CPST rate complaint was sent to the city on October 26, 1999. A copy
of the letter was enclosed in the agenda packet. Refunds of $1,2G for Preferred tier subscribers were made in
November.
D. Channel Line Up Changes Effective December 1, 1999
The City received a letter dated October 26, 1999, notifying us of some changes to the channel line up.
Notification and new channel line up cards were also sent to subscribers.
E. Merger Update Brochures for October 99, November 99, and December 99
Brochures were sent to keep everyone aware of the benefits of the planned merger between MediaOne and AT &
T. Copies of these brochures are enclosed in the agenda packets for the commissioners to review. The merger
should be finalized by the end of March.
Other Old Business
*Linda reported the web site should be up and running by March 15"'. The address will be www.ci.columbia-
heights.mn,us Net Link was the company chosen to assist us in setting up the page.
*Kathi reported that digital service will be added this summer. This will add approximately 200 channels.
Subscribers will be able to purchase these as desired.
*There was a discussion regarding the Annual Report that is due March 31, 2000. The company had requested a
variance be made in regards to the Annual Report and that it, along with the subscriber survey, no longer be a
requirement. Linda reported that the City has decided that the variance will not be granted. The City Manager
will be sending a formal letter stating that we still expect an Annual Report be submitted with the subscriber
survey included, and that we will extend the time frame to May 31, 2000, for this to be completed. The
commission members and city staff felt that although information contained in the annual report is available at
any time, upon request, the annual report reflects our request. Moreover, there are a number of pertinent
questions included in the survey regarding programming and customer service that should be reviewed on an
annual basis. It was noted that this may not be the best way to get information from subscribers, but for now it is
feedback of some sort, which provides useful information on a variety of issues, including customer satisfaction
with the service and company's performance.
TELECOMMUNICATIONS COMMISSION
MINUTES OF FEBRUARY 17, 2000
PAGE3
NEW BUSINESS
A. Notice of Rates for Programming Services and Equipment Effective January, 2000
Notice of rates for programming services and equipment effective January I, 2000, were enclosed in the agenda
packets. It was noted that the rate for basic service went down, and the rate for preferred service went up.
It was noted that the city received numerous calls regarding the latest increase in rates. Subscribers that called
feel cable service is not affordable any longer and that because there is no real competition out there, they are
being over charged for the product.
B. MediaOne offers Digital Telephone Service
Beginning in December, 1999, MediaOne now offers digital telephone services including 15 popular calling
features. Detailed information and pricing was enclosed in the agenda packet for review.
C. Receipt of 4°i Quarter Franchise Fee
A copy of the franchise fees of $27,447.16 for 4"' quarter 1999 were enclosed in the packets. There was an
adjustment made to the 4°i quarter check due to an overpayment from 3'" quarter. Due to a number of
corrections, adjustments, and irregularities noted by a number of franchises, it was recommended we perform an
audit on the franchise fees. These fees have not been audited since 1990. Bernick and Lifson (our attorneys)
have entered into an agreement on our behalf with Aspund & Skokan to perform the audit for the year 1999.
This audit should begin soon. As other cities and commissions served by MediaOne will be participating, the
costs will be shared.
D. Notice of Semi Annual Proof of Performance Testing in February
Notice was given January 10, 2000, of the semi-annual proof of performance testing that will be done in
February. Subscribers may experience 30 seconds of interrupted service due to the testing.
E. Other New Business
*Linda reported that there will be two openings on the commission, so if anyone knows of an interested party,
have them contact the Deputy City Clerk for an application. Ruth Graham does not wish to be re-appointed, and
Julianne Wyckoff (Council Representative) will become anon-voting Council Liaison to the Commission, due to
an Ordinance change recently passed by the City Council.
*Linda reported that the city council recently passed a moratorium on Antennas being constructed in Columbia
Heights. This moratorium was established to allow the Planning and Zoning Commission to establish a policy
regarding placement of towers and antennas in our city. Ken Henke felt strongly that the Telecommunications
Commission should be reviewing these requests in addition to the P & Z Commission. Once a policy is
established, the plan will be submitted to the Telecommunications Commission for review. Steve cautioned the
commission on the legal ramiEcations of denying placement of these antennas. 47 U.S.C. § 332 (c) (7) addresses
this matter and the limitations cities have.
Linda stated that it may be necessary to review exactly what the role of the Telecommunications Commission is.
What areas fall into the responsibility of this commission versus the responsibiiities of other commissions.
*Reuben asked for information on the infra red cameras that were purchased by the Fire Department. He is
concerned with the radio frequency that is used to transmit the picture to a off site display monitor. Has the city
checked into the licensing of the radio frequency for this equipment. He was interested in a demonstration.
Linda indicated that it was demonstrated at a recent council meeting. He should contact Jean Kuehn to view the
tape, if interested.
TELECOMMUNICATIONS COMMISSION
MINUTES OF FEBRUARY 17, 2000
PAGE4
*Linda passed out a request from School District #13 for funding equipment purchases of $25,693. She reported
that in 1989 we provided the school district with $8,500 for equipment, and $1,950 for production of tapes of
Biology classes, and $1,000 to develop curriculum for K-4 grades. In 1990 grant guidelines were established
which provided grants for production expenses, but not for equipment.
Dennis reported that Kathy Kelly, the new Director of Curriculum at the High School, is heading up this request.
It seems she would like to start a video production class that would give hands on experience to students using
the latest in digital technology. This production/editing equipment is far superior to that being used by the city at
the cable studio now. The commission members had the following concerns regarding the request:
-The school could be using the equipment at the cable studio, where production and editing is done now for the
city. This facility also has two personnel assigned for this very task. The city has not purchased editing
equipment for its own productions, as it would be a duplication. Maybe the equipment at the studio should be
upgraded instead, so all interested parties could be using it.
-The only thing the school uses its access channel for now is communications done on the character generator
and taped re-broadcasts of the school board meetings. They have not produced any programs thus far, for
broadcast on the educational access channel, and the studio has been available for their use all along.
-With HDTV becoming the new technology during the next couple of years, it's possible this digital equipment
may be obsolete within a few years. Technology is changing very rapidly to invest this kind of money in
equipment to be used by one entity.
-Where is the school district funds and support for adding such a studio to the high school? What exactly are the
plans for this equipment? What other funds have been applied for?
Kathi Donnelly-Cohen said the district could have applied for a COOL Grant, but did not. Information was
distributed by MediaOne to all the area schools. This is an annual grant that is applied for in the fall and was just
awarded for this year to Coon Rapids Schools in the amount of $10,000. It was also noted that there is School
and Universal Libraries Grant monies available. Kathi said she could provide more information on these
programs if Ms. Kelly would like it.
Dennis wanted to know what the intended use of the PEG fees are. He thought it was to support programming
on all the access channels. He felt that some of the funds received should be distributed to promote
programming on access channels other than just the government access. Linda responded that funds have been
given out of franchise fees received to promote programming to the school district for the education access
channel, the Library has received money to produce programming, and monies have been donated to Metro
Cable Network, the Public/Regional Access channel. Monies have also been used to create the web site for the
city, for Internet access, and putting government records on laser fische to make them more accessible to the
public.
It was the staff's feeling that they be informed of other funding options and what is available at the cable studio
for their use to accomplish the goals they seem to have in mind.
Motion by Ken, seconded by Bob to not provide funding for their request for equipment, and to provide details
on grants that should be applied for and to encourage the use of the current cable equipment and studio facilities.
Ayes-Henke, Ruen, Swee, Buboltz. Nay-Stroik.
TELECOMMUNICATIONS COMMISSION
MINUTES OF FEBRUARY 17, 2000
PAGE 5
REPORTS
A. Report of Commissioners
Dennis thanked the commission for considering and discussing the School District's request for equipment
funding. The other commissioners had nothing to report.
B. Report of MediaOne-
Kathi noted the technical report categories and terminology were included in the agenda packets. These terms
are used when filling out service reports detailing how the problems were fixed. She then reviewed the reports
from October 99, November 99, December 99, and January 2000,
C. Report of the Cable Attorney
Linda passed out a legislative update regarding the "Kelley Bill" and others that have been offered recently for
consideration. Steve provided a verbal update on such legislation, These bills could affect the city's receipt and
control of franchise fees and the number of channels that would be dedicated for access by the cable service
providers. Hopefully, these bills will not be passed. MACTA is encouraging cities to contact their legislators to
express their opposition of these bills.
Metricom has circulated an agreement to communities regarding a mini antenna system they are trying to
establish. There are some legal concerns that Bernick and Lifson have addressed for some of their other clients.
If we are contacted, the city should contact Bernick and Lifson for their recommendations to update the
agreement.
Bernick and Lifson is still working with MediaOne concerning their Trade Secret Information. They are close to
an agreement, and Steve will keep us informed.
D. Report of the Assistant to the City Manager
Linda had nothing further to report.
Motion by Ken Henke, seconded by Bob Buboltz, to adjourn the meeting at 9:06 prn. Alt ayes.
Respectfully submitted,
Shelley Hanson
Secretary
0
~~^ This is Broadbazul. This is the way.
Legislative Forecast
LEGISLATORE LOOKS AT
TIONS REFORM
Judging by the number of bills already drafted and
circulating the halls of the State Capitol, the 2000
Minnesota Legislature is expected to consider ma-
jor reform of the way telecommunications and ca-
ble companies are regulated. Even Gov. Jesse
Ventura is a proponent of some sort of serious re-
form as a means to accelerate technological ad-
vances statewide in telecommunications. "We
don't want a state of haves and have nots," the gov-
ernor stated at a recent Capitol hearing on the issue.
While few would disagree with the Governor, there
will be much discussion about what action the Leg-
islature should take to accelerate investment in
telecommunications in Minnesota. AT&T and Me-
diaOne, leaders that have been investing to bring
advanced telecommunications services to Minneso-
tans, will be right in the middle of the legislative
debate.
Some of the issues that will be debated at the Capi-
tol this session include:
-How to increase local telephone competition and
telecommunications investment in Minnesota.
-Whether local communities' authority to regulate
cable companies should be transferred to the state.
- Whether to create forced access regulations that
would require cable providers that have invested in
new broadband networks to allow competitors
automatic access to their infrastructure.
- Whether to deregulate the local phone monopo-
lies before competition for their services has fully
developed - 97 percent of residents still have only
one choice for local telephone service.
CoruinneAoir Ure Gack
MERGER INFORMATION CENTERS:
~`°'
February 2000
VV VVVJ.i Ift CIlifl r*l r' ..l l-1..4 (.1 it
REGION APPROVES MERGER!
A major milestone has been reached: All 89 com-
munities MediaOne serves in Minnesota and west-
ern Wisconsin have approved the transfer of Me-
diaOne's cable franchises to AT&T. The Minne-
sota Public Utilities Commission also has approved
the transfer, whicl-i means all necessary state and
local regulatory bodies in the Twin Cities area have
signed off on the merger.
"These local approvals pave the way for MediaOne
customers in the Twin Cities area to experience the
benefits of the telecommunications revolution that
is sweeping the country," MediaOne vice president
and general manager Jeff Hackman said. "Both
AT&T and MediaOne are excited to complete the
network upgrade and deliver the advanced products
that can meet our customer's total information, en-
tertainment and communication needs."
The local community approvals were all received
without any forced access regulatory burdens.
Forced access regulations would require cable
companies that have invested much time and effort
into creating privately financed networks to share
them with competitors providing Internet access.
Forced access would create agovernment-
mandated free-ride for these competitors. AT&T
and MediaOne instead support consumers' ability
to access whatever Internet content they wish, free
of govermnent regulation.
"These municipalities have demonstrated their
foresight to create an environment conducive to in-
vestment and competition, especially for local tele-
phone service," said Charles Ward, AT&T vice
president of government affairs.
AT&T and MediaOne expect to complete the
merger in the first half of the year. Federal approv-
als are also required for the merger to be finalized.
AT&T • 901 MARQUETTE AVENUE SOUTH, SUITE 900 • MINNEAPOLIS, MN 55402
M EDIAONE 10 RIVER PARK PLAZA SAINT PAUL, MN 55107
Mayor:
Councilroerobers:
CITY OF COLUMBIA HEIGHTS Gary L. Peterson
Donald G. Jolly
Marlaine Szurek
590 40TH AVENUE N.E., COLUMBIA HEIGHTS, MN 55421 -3878 (612) 782.2800 TDD 782-2H06 Julienne Wyckoff
Plense note: City Hnl/ Phone NamLers Gnve chnnged. New numbers nre: Mnia Number (763) 70G3600; TDD (763) 706-3692 John Hunter
City Manager:
Walter R. Fehst
ADMINISTRATION
March 7, 2000
Bradley Peterson
214 44'h Avenue NE
Columbia Heights, MN 55421
Re: Telecommunications Commission Opening.
Dear Bradley:
On behalf of the Mayor and City Council, we would like to ask you to consider serving on the
Telecommunications Commission for the City of Columbia Heights. We are aware of your strong
commitment to our community and feel you would be very beneficial to this group.
The Telecommunication Commission studies, investigates, and makes written recommendations
on all matters pertaining to the provision of telecommunications services within the City. The
commission oversees the administration of the cable television franchise, which includes rate
regulation activities, franchise renewals, transfers of ownership, enforcement of customer service
standards and ensuring compliance of the cable company with the terms and conditions of the
franchise. The Commission meets the third Thursday of each month at 7:00 p.m.
The City Council realizes the immense changes happening in this "electronic age" and hope that,
through the direction of the Telecommunications Commission, the City can make intelligent
decisions that will benefit everyone on our community. We feel your expertise and insight would
be a definite asset to this Commission.
We hope that you will consider and accept our request to be a member of the Telecommunications
Commission for Columbia Heights. If you have any questions, please feel free to call me at 706-
3607, or Linda Magee, Assistant to the City Manager, at 706-3009. Please call Patty Muscovitz,
Deputy City Clerk, at 706-3611, with your decision. She would gladly begin the process to have
you appointed to this Commission.
Again, we hope you will consider this appointment. Thaulc you for offering your time and talents
to the City of Columbia Heights. The City Council truly appreciates your desire to serve your
community.
Yours very truly,
~~~n~~ ~ , ~C.s ~J
Gary L. Peterson
Mayor
~!,s~°`'
nl ~~~~
~ ~ ~~/,N~;/;/yN/ ~ ,
C. W. Fehst, CPty Manager
Linda Maga, Auislant City Mawga
~~ ~~
THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BAEIS OF DISABILITY IN EM PLOVM ENT OR THE PROVISION OF SERVICES
EQUAL OPPORTUNITY EMPLOYER
~~
Sent by: OERNICK L'IPSON P.A. 612 546 1003; 02/78/00 71:17AM; tFa^ g813;Page 2
CITY OF
RIGHT-OF-WAY PERMIT AND FACILITY USE AGREEMENT
THIS RIGHT-OF-WAY USE AGREEMENT (this "L'se Agreement") is dated as of
(the "Effective Date"), and entered into by and between the C-TY
OF , a Minnesota local governtrsent unit (the "City'"), and METRICOM,
INC., a Delaware corporation ("Metricom").
RECITALS
A. Metricom owns, maintains, and operates, in accordance with regulations promulgated by
the Federal Cotnmunications Commission, a mobile digital data communications radio
network known as Ricochet, utlli2ing Radios (as defined in § ~-91_9 below) and
related equipment certified by the Federal Communications Commission.
13. For purpose of operating Ricochet®, Metricom wishes to locate, place, attach, install,
operate, and maintain Radios in the Public Right of_Way (as defined in § i-41,_8 below)
on facilities owned by the City, as well as on facilities owned by third parties therein.
AGREEMENT
NOW, THEREFORE, for good and valuable consideration, the receipt and sulficiency of which
are hereby acknowledged, the parties agree to the following covenants, terms, and conditions:
1. DEFINITIONS. ,~
up doses of this Use Agreement, the followine terms, phrases, words. atlbreviations
and their derivations shall have the meaning given herein. When not inconsistent
with the context, words used in the present tense include the future tense: words in
the plural number include the singular number: words in the sin fular number
include the plural number, and the masculine gender includes the feminine gender.
!Jn exs otherwise expressly stated. words not defned herein shall be given the
meanine art forth inapplicable Law and, if not defined therein. the words shall be
given their common and ordinarvp~eaninE. The word "shall" is ahvavs mandatory
and not merely direMOry. 'b''he word "may" is directory and discretionary. and not
mandatory.
1.1 Adjusted Gross Revenues. "Adjusted Gross Revrnues"means the gross dollar
amount received by Metricom for its Services (as defined in § 1.11 below)
provided to subscribcn tvith billing addresses in the City, excluding (i) any utility
users' tax, communications tax, or similaz tax or fee; (ii) local, state, or federal
taxes that have been billed to the subscribers, and separately stated on
subscribers' bills; and
(iii) revenue uncollectible from subscribers (i.e., bad debts) with billing addresses
in thr. Ciry that was previously included in Adjusted Gross Revenues: nrnyided
Sent by: BERNICK IIFSON P.A, 612 546 t003; 02/18/00 it:t7AAl;ktFa, g873;Page 3
that if bad debt is subseguentty collected !t shall be includgd in Adjusted
froxs Revenues in the period collceted.
i.2 City. "City" means the City of and anv lawful
et tee.
7.3 Fee. "Fee" means any assessment, license, charge, iee, imposition, tax, or levy of
general application to entities doing business in the City lawfully imposed by any
govetmental body (but excluding any utility users' tax, franchise fees,
communications tax, or similaz tax or fee).
1.4 "
~k:S Laws. "Laws" means any and all statutes, constitutions, ordinances, resolutions,
regulations, judicial decisions, rules, tariffs, administrative orders, certificates, orders, o:
other requirements of the City er-ctl+er, the State of Minnesota, the fedtral tovernment
or n governmental agency having joint or several jurisdiction over the parties to this
Use Agreement.
i-~ 1.5 Metricotn, "Metricom" means Metricom, Inc., a corporation duty
organized and existing under the laws of the State of Delaware, and iu
lawful successors, assigns, and transferees.
~1-7-1_6 MPUC. "MPUC" means the Minnesota Public Utility Commission.
+5-17 Municipal fiacilitics. "Municipal Facilities" means City-owned sveet
light poles, lighting fixtures, electroliers, or other City-owned structures
located within the Public Right of_Way and may re!'er to such facilities in
the singular or plural, as appropriate to the conuxt in which used.
i~ I_8 Public Righ4_of_Way. "Public Right~f_Way" means the space in, upon,
above, along, across, and over the public streets, roads, highways, lanes,
cattways, courts, ways, alleys, boulevards, sidewalks, bicycle lanes, and
places, including all public utility easements ar~d public service easemenu
as the same now or may hereafter exist, that are under the jurisdiction of
the City. This term shall not include county, state, or federal rightsof--way
or any property owned by any person or entity etFtertl+an, includine the
City, except as provided by applicable Laws or pursuant to an agreement
between the Ci and Mttritnm, or the City and any such person or
entity. if the City adjusu its boundaries pursuant to Minn. Sta[., Chap.
414 through annexation, incorporation, combination, detachment, or other
means, this Use Agreement shall be binding on the entire area within the
City's boundaries shat the adjustment.
Sent by: BERNICK LIfSON P.A. 612 546 1003; 02/1B/00 1t:78AM;Mtiai M873;P2ge 4
i~le-1_9 Radio. "Radio" means the radio equipment, whether referred to singly or
collectively, to be installed and operated by Metricom hereunder and an
Qther equipment and facilities used in the~rovision of Services
he~,{{nder.
1.10 Ricochet MCDN, "Ricochet MC)DN" means Ricochet MicroCellular Data
Network. a digital wireless data communications microcellular radio network
that ornvides Services.
I.11 Services. "Services" means the mobile digital communications data services
provided through itieeehet~the Ricochet MCDN by Metricom, which services
consist principally of wireless Internet, email and local area network access and
may include transmission of sotrrtd and video images; provided, however, that
"Services" shall not be conswed, interpreted or applied to authoriu either real
time telecommunications services (including telephone and voice) or video or
cable services, except as may be considered standazd
Internet content.
2. TEIL~1. This Use Agreement shall be effective es of the Effective Date and shall extend
for a term of nine (9) years ,unless it is earlier
terminated by either parry in accordance with the provisiotLS herein. The term of this Use
Agreement shall be renewed automatically for three (3) successive terms of five (5) years
each on the same terms and conditions as set forth herein, unless either party notifies the
other of its intention not to rcncw not less that one hundred eighty (180) calendar days
prior to commencement of the relevant renewal tetra.
3. SCOPE OF USE ACREEMENT. Any and all rights expressly granted to Metricom
under this Use Agreement, which shall be exercised at Metricom's sole cost and expense,
shall be subject to the prior and continuing tight of the City under applicable Laws to
maintain and reconstruct the Public Right-of--Way and Municipal Facilities, and to
use any and all parts of the Public Right of-iVay-•of-Way and Municipal Facilities
exclusively or concurrently with any other person or entity and shall be further subject to
al I deeds, easements, dedications, conditions, covenants, restrictions, encumbrances, and
claims o!'title of record which may affect the Public Right_-of Way. Nothing in this Usc
Agreement shalt he deemed to grant, convey, create, or vest in Metricom jj] a real
property interest inland, including any foe, kasehold interest, or easement, or (ii) any
pronerty interest in Municipal Facilities Io addition nothin,Y herein shat trait the
Citv's ahilitKto exercise its nolic£poweex to the full extent ~termltted by_apniicable
aw. Any work performed pursuant to the rights granted under this Use Agreement shall
be subject to ilia reasonable prior review and approval of the City.
3.1 Attachment to Municipal Facilities. Tfte Subject to Metricom's obtiEation to
obtain anv nermitc or approvals ay might be required under Zppiieahle 1 aws
or the Citv's &~arter. standards or guidelines, the Ciry hereby authorizes and
permits Metricom to enter upon the Public Right of Way told to locate, place,
Sent by: BERNICK LIFSON P.A
6t2 5a6 1003; 02/t8/00 1t:tBAM;ktra, NBt3;Page 5/22
attach, install, operate, maintain, remove, reattach, reinstall, relocate, and replace
Radios in or on Municipal Facilities for the gale purposes of operating
Rieoehet~a Ricochet MCDN and providing Services. In addition, subject to the
provisions of § 4.3 below, Metricom shell have the right to draw electricity for the
operation of the Radios from the power source associated with each such
attachment to Municipal Facilities.
3.2 Attachment to Third-Party Property. Subject to applicable laws and to
obtaining the permission of the owner(s) of the affected property, the City hereby
authorizes and permits Metricom to enter upon the Public Righc of Way and to
attach, install, operate, maintain, remove, reenach, reinstall, relocate, and replace
Radios in or on poles or other structures owned by public utility companies or
other property owners located within the Public Right_of_Way as may be
petmined by the public utility company or property owner, as the case may be, for
the sole purposes of operating i~icocl+et~a Ricochet MCDN and providing
Services, Upon request, Metricom shall fiunish to the City documentation of such
permission from the individual utility or property owner responsible.
, ,•
3.3 No Intcderenee. Metricom in the perfomtance and exercise of its rights and
obligations under this Use Agreement shall not interfere in any manner with the
existence operafion iostallatina maintenance. constnrction
and recot~struction of any and all public and private rights-ofeway, sanitary
sewers, water mains, storm drains, gas mains, poles, aerial and underground
electrical and telephone woes, electroliers, cable television f cilities, and other
information or communications, utility, or municipal property, without the
express written approval of the owner or owners of the affected property or
propenies, except as permitted by applicable Laws or this Use Agreement.-Gitr
3.3.1 lnterferenee Resolution. Any actual or anticipated radio interference
caused by either the presence of the Radios or the presence of any such
other communications equipment or devices in the Public Right of_Way
shall be resolved by Metricom and any such Diller providers without cost
to City on the basis of the applicable rules, regulations, practices, and
procedures of the FCC. '
3.4 Compliance with Lawa. Metricom shall comply with all applicable Laws in the
exercise and performance of its rights and obligations under this Use Agrcement.
required bx,,law or regplation Metricom shall obtain all required
Sent by: BERNICK LIFSON P.A. 612 546 1003; 02/16/00 11:18AM; ktl'+~ g813;Page 6/22
approvals from appropriate governine authorities and s6eli secure env
required assessment of the impact that the Radio° may have nn the
environment. The Right-of--Way Management Reimbursement provided for in §
4.1 below shall be in lieu of all other City fees, with the exception of any City
permits required for the irritiel installation ofihe, repair. relocation and
replacement of Radios. City shall promptly respond to Mctricom's filings and
shall otherwise cooperate with Metricom in faciliutting the deployment of
its Ricochet MCiJN on MunieiQpl
Fac' iti in a reasonable and timely manner,
3.5 location and [nstallation of Radios. The proposed locations of Metricom's
planned itsitttd installation of Radios shall be determined subject to the reasonable
prior review and approval of the City, promptly aAer Metricom's review of
available strret light maps and prior to deployment of the Radios. Upon the
completion of installation. Metricom promptly shall famish to the City a pole list
showing the exact location of the Radios in the Public Right e¢ib'ar-o -Wav.
A~ subsequent removal or relocation of Radios shall be disclosed (,o the
City, in writin,P within te~10,~ davs of the date that the relocation or
renewal is initiated.
3.6
p'acitities is limited to the specific suthortzation granted in is lJcc
Agreement.
4. CQMPENSATION; UTIl1TY CfIARCES. Metricom shall be solely responsible for
the payment of all lawful Fees and other~piicltble levies in connection with
Metricom's performance under this Use Agreement, `- ---°~'---- •-~`•` •`_ ._.._. _ __.
ferti~-below.
4.f Right-of--Way Management Reimbursement. In order to reimburse City for
any right-of=way management costs it may incur during the term of this Use
Agreement following the initial deployment of the Radios in connection with
Metricom's entry upon and deployment within the Public Right of--Way,
Metricom shall pay to the City, on an annual basis, an amount equal to one
percent (1 %) of Adjusted Gmss Revenues (the "Right-of--Way Management
Reitnbursetnent"), which amount
a al a remitted to City as
provided herein. The parties agree that such Right-of--Way Management
Reimbursement represents a fair estimate of the costs of continuing management
of the Public Rightof--Way utilized by Metricom and that such Right-of--Way
Management Reimbursement is not a franchise fee or payment for use of the
Public Kight of--Way. The Right-of--Way Management Reimbursement shall be
payable for the period commencing upon the date that Services are offered to
eetnmereiaiiy paying subscribers within the City using Radios installed pursuant
Sent by: BERNICK LIFSON P.A. 672 546 7003; 02/78/00 77:79AU; kern, g873;Page 7/22
to this Use Agreement and ending on the date of tem7ination of this Use
Agreement, and shall be due on or before the 45'" day after flee end of each
calendaz year or fraction thereof. Within forty-five (45) days after the termination
of this Use Agreement, compensation shall be paid for the period elapsing since
flee end of the last calrndar year for which compensation has been paid. Metricom
shall furnish to the City with each payment ofcompensntion required by this
section a statement, executed by an authorized officer of Metricom or his or her
designee, showing, in detail the amount of Adjusted Gross Revenues for the
period covered by the payment. if Metricom or the City discovers any error in
the correct amount of compensation due, the City shall be paid within thirty (30)
days of discovery of the error or determination of the correct amount. Any
overpayment to the City through error or otherwise shall be refunded or offset
against the ttext payment due. Acceptance by the City of any payment due under
this section shall not be deemed to be a waiver by the City of any breach of this
Use Agreement occurring prior thereto, nor shall the acceptance by the City of
any such payments preclude the City from Later establishing that a lazger amount
was actually due or Crom collecting any balance due to the City. City may, at any
time, at City's sole option, upon ninety (90) days written notice, require Metricom
to discontinue the Right-of--Way Management Reimbursement compnnsatinn.
Upon receiving such notice Metricom shall, no later than ninety (90) days afar
receiving such notice, cease making all compensation payments that would have
been payable after such ninety (90) day notice period. if City requires such a
discontinuation of Right-of--Way Management Reimbursement compensation, the
City may then eltarge recover from Metricom, on all artttual basis, its actual
Right•of• Way Management costs (pursuant to Minnesota Statutes Section
237.162, Subd. 9 and Section 237.163, Subd. 2(b)), that aze incurred afer the
expiration of the ninety (90) day period described above.
4.1.1 Reduction of Rigbt-of--Way Management Reimbursement by Amount
of Utility Users or Communications Tax. Notwithstanding anything to
the contrary in this Use Agreement, if the Services aze subject to a utility
users tax, communications tax, or other similar tax or fee which accrues to
the City by operation of the City's Municipal Code or other applicable faw
yew, then the amount of the Right-of--Way Management Reimbursement
shall be reduced by the amount of the applicable utility users tax,
communications tax, or such other similar tax or fee.
4.1.2 Accounting Molten. Metricom shall keep accurate books of account at
its principal office in Los Gatos or such other location of iu choosing for
the purpose of determining the amounts due to the City under § 4. ]above.
The City may inspect Metricom's books of account relative to the City at
any time during regular business hours on d7irey(39)~luys torte-eieht (4R1
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hours, prior written notice and may audit the books from time [o time at
the City's sole expense, bui in each case only to the extent necessary to
confirm the accuracy of payments due under § 4.1 above. Altcmatively.
Metricom will all make available for inspection by the City at
Metricom's office located closest to the City, upon ti»rry{36}dttys
fo t!_y-eieht j48).j}gurs' prior written notice, the relevant portions of its
books and records as reasonably necessary to confirm the accuracy of any
payments due the City under this Use Agreement. Should an audit
performed pursuant to this paraeraoh disclose an underpayment of
amounfs due under this Use Agreement. then Mctricotp shell
~imburse the Citv for the coats of the audit, in addition to gavine the
City thgamount of the underQayment The City agrees to hold in
confidence any non-public information it !cams from Metricom to the
fullest extent permitted by Law,
4.2 Annual Fee. As compensation for the use of Municipal Facilities, Metricom shall
pay [o the City an annual fee (the "Annual Fee") in the amount of Sixty Dollars
($60.00) €efr-dte~us~ofeneh tl.-er Municipal Facility, if any, upon which a Radio
has been installed purs»ant to this Use Agreement. Where light poles or other
facilities to be used by Metricom within the Fublic Right_of_Way are owned by a
utility, such annual fee shall be paid to the appropriate utility and not to the City.
The aggregate Annual Fee with respect to each year ot'the term o b's Tlse
Agreement shall be an amount equal to the number of Radios installed on
Municipal Facilities doting the preceding twelve (12) months multiplied by the
Annual Fee, prorated as appropriate, and shall be due and payable not later than
forty-five (45) days after each anniversary of the ftsstaiiatiaet Effective Date. Crty
represents and covenants that City owns all Municipal Facilities for the use of
which it is collecting from Metricom the Annual Fec pursuant to this § 4.2.
4.2.1 CPI Adjustment.
titereafier ,
The Anoual Fec shall be increased
annually, rtn the anniversarv of the Effective Date of this Ilse
~precment, by a percentage amount equal to the percentage increase, if
any, in the U.S. Department of Labor, Bureau of Labor Statistics
Consumer price Index (All Items, All Consumers, ] 982-1984=] UO) which
occurred during the previous five-year period for the Midwest Urban
Region Consolidated Mevopolitan Statistical Area.
4.3 lrlectricity Cbarges. Metricom shall be solely responsible for the payment of all
elecuicol utility charges to the applicable utility company based upon the Radios'
usage of electricity and applicable tariffs.
4.4 Reimbursement of City's Project Review >:xpenses. Mevicom shall reimburse:
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the City for reasonable attorney's tees and other project
review expenses relating to the prepazation and review of this trse •~e Agreement,
promptly upon receipt of itemized bills, paid invoices, and other such
documentation as Metticom shall reasonably require, and in a total amount not to
exceed t3ete Twn Thousand Dollars (~~BAAjrsz~tNHii. The roimbursrment
provided for in this § 4.4 shall not replace or excuse Metricom from the payment
of any applicable permit fee
Likewise the reimbursemeniprovided for herein
shall not he offset a¢ainat the Annual Fee the 1~igh~-or way Management
Reimbursement, any recov_yr of actual )itt~pht•of•Wav management costs or
env other amounts owed to the Cifv nu~r usnt to thi~t Use Agreement nr
applicable Law.
4.5 Municipal Subscriber Program. City shall have the right throu;hout the term
of this Use Agreement to receive up to the maximum number specified below
(based upon the City's population) of free ftieoehc~Rieochet MCDN basic
service subscriptions and,portable wirciese modems. The number of free
subscriptions and portable wireless modems which the Ciry may receive shall be
determined in accordance with the City's official population, as shown on the
latest available census data, as follows: (a) for municipalities with a population of
less than 100,000, up to a maximum of ten (10) free subscriptions and ten f10)
tree portable wireless modems; {b) for municipalities with a population of
between 100,000 and 249,000, up to a maximum of fifteen (1 S) free subscriptions
sod fifteen (ISt free portable wireteas modems; (c) formunicipalities with a
population of between 250,000 and 500,000, up to a maximum of twenty (20) free
subscriptions and_twenty (201 free portable wireless modems; and (d) for
municipalities with a p_tr,~ulation ofover 500,000, up 1o a maximum of
twenty-five (25) free subscriptions and twenty-five L5) free~tortable wireless
mod .City shall designate one person who shad be responsible for ordering
and receiving any subscriptions and modems. To take advantage of this
program, the designated individual should contact Metricom's Network Real
Estate Department at the address stated in § 8 9 below. Ciry's right to use the
subscriptions and portable wireless ptodems shall commence at the time that
~ieaeiret®Ricnchet MCDN service is eorntnereiel}y available in the City and
shalt extend until the expiration of the term of this Use Agreement or through the
length of time that Radios are deployed in the ii4tmieipal ub is Right:of_Way,
whichever is longer. City's use of the subscriptions and free portable winless
modems shall be subject to the standard i~ieeehet~Ricochet MCDN terms and
conditions of use. City understands and agrees that arty additional modems and
>~iy equipment required to utilize the subscriptions, and any additional servile
subscriptions or service options the City may desire, may be obtained from en
authorized reutilcr at market rates current from time to lima. City shall use all
subscriptions and portsbte wireless mo rms provided pursuant ro this section
solely for its own use and shall not be entitled to resell, distribute, or otherwise
permit the use of same by any other petnon, excepting a local public entity that
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provides public service within the corporate boundaries o1'tlte City (r.g.,
municipal schools, public safety, or fire depattrnents, etc,). The level of benefits
and service provided to City by Metricom as "basic service" shall not be
diminished or reduced during the term of this Use Agreement or renewal thereof
or prior to its the cancellation or termination of this Use Agreement, as the case
may be.
4.6 Most-Favored Muaicipaliry Clause. Should Metricom after the panics'
execution and delivery of this Use Agreement enter into aright-of--way permit and
facility use agreement with another municipality -`•'~- --- ~ -=-- -~ - --° --'`~~-
in the seven-county
Minneapolis/St. pgul metropolitan area, which agreement con[ains Dither (s) a
higher Right-of--Way Management Reimbursement as described in § 4.1 above, or
(b) a higher Annual Fee as described in § 4.2 above, or (c) a higher amount of
Reimbwsement of City's Project Review $xpenses as described in § 4.4 above,
City shall have the right to require that Metricom modify this Use Agreement to
incorporate the same or substantially similar superior benefits and such other
terms.
S. REMOVAL.1tELOCAT[ON. ABANDONMENT ANA DISPLACEMENT OF
RADIOS: MAINTENANCE. Metricom understands and acknowledges that City may
require Metricom to remove or relocate one or more of its Radios, and Metricom shall at
City's direction remove or relocate such Radios at Metricom's sole cost and expense,
whenever City reeseaebly, in its sole discretion. determines that the removal nr
relocation is needed for any of the following purposes; (a) if required for the construction,
completion, repair, relocation, or maintenance of a City project City property or Puhlic
Riehts-of-Way; (b) because the Radio is interfering with or adversely affecting proper
operation o!'City-owned Tight poles, traffic signals, communications systems or other
Municipal Facilities; or (c) to protect or preserve the public health or safely. In any such
case, City shall use reasonable efforts to afford Metricom a reasonably equivalent
alternate location with no duty to incur any expenses or cost to City, [f Metricom shall
fail to remove or relocate any Radios as requested by the City within a reasonable time
under the circtunsta»ces in accordance with the foregoing provision, City shail be entitled
to remove or relocate the Radios at Metricom's sole cost and expense, without further
notice to Metricom. The ~'itv shall noI be liable to Metricom for any damages caused
City removal or relocation of Redior under this Use Agreement. 'fo the extent the
City has actual knowledge thereof, the City will anempt promptly to inform Metricom of
the displacement or removal of any pole on which any Radio is located.
5.1 Relocations at Metricom's Request. In the event Metricom desires to relocate
any Radios from one Municipal Facility to another, McVicom shall so advise
City, City will use reasonable efforts to accommodate Meuieom. to the extent
osR Bible. by malting another reasonably equivalent Municipal Facility available
for use in accordance with and subject to the terms and conditions of this Use
Sent by: BERNICK LIFSON P.A, 612 546 1003;
Agreement.
02/t8/00 7t;21 AM;ktraa gSt3;Page it/22
5.2 Damage to Public Right ef-Wsy-ot Wav and City ProQertv, 1Yhenever the
installation, removal or relocation of Radios or anv Ricochet MCDN facilities
is required or permitted under this Use Agreement, and such installation, removal
or relocation shall cause the Public Right af~Way--of-Way or anv Citv~roperty
to be damaged, Metricom, at its sole cost and expense, shall promptly repair and
return the Public Right
prevailing prior to Metricom's work, normal wear and tear excepted, If
Metricom does riot repair the site or nrooerty as just described, then the City
shall have the option, upon fifteen (IS) days prior written notice to Metricom, to
perform or cause to be performed such reasonable and necessary work on behalf
of Metricom and to charge Metricom for the proposed costs to be incurred or the
actual costs incurred by the City at City's standard rates. Upon receipt of a
demand for payment by the City, Metricom shall promptly reimburse the City for
such costs.
Si3 Mainfenance of Radios. Metrifgirt,~tall maintain sll Radios a»d Ricochet
MCDN facilities in eood and safe condition sod state of repair.
S`9 t-bandonment In the event that any Radios arc abandoned or deactivated
for period of three (3) months or more. Metricom shall notify the Ci4y. It
the City so regnesh. Metricom shall promptly remove tfie abandoned or
deactivated Radios gt no rnst or expense to the Cit~If, within fifrcen t151
deactivated Radios at Metricom's sole cost and cxpFnse. o~pccent the
reversion of ownership of the same to the City consent to which ~s hereby
given by Metricom. If the Citv exercises itc reversion rights, Metricom shall
execute such documents of title as will convey ]I ri ht, title and interest in
the abandoned or deactivated Radios to the City.
5.5 Removal lJnon Termination Upnn termination of this Use Agreement
subject to the City's Iten rights as provided by Minnesota law or the
corres~ndinr.provisions of anv future law. Metricom shall remove ail of its
Public R_ght-of--Wav aad Municipal Facilities. end shall restore tilg Public
~ t-of--Wav and Municipal Facilities fn the condition existingwhen
off, pally used by Metricom I/xcept as pFovided herein Metricom chali he
deemed to have abandoned $nv Radios tacilitics and~ersonal,pronerty that
have oat been removed from Municlpal Facilities and the Public
$.ieht-o(';Wav wkhin thirty (30) Qave followine termination, unless such
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emoval i.c urnhi} itedlt~e of tha Cirv's exercise of it~ien ri hts or~tnless
the City grants in writJn~ a longer period for removal. At the City's request,
Metricom shall. at its sole e~ense. orortZptly remove abandoned Radios.
~'aeilities and personal prone from Munici,Ral Facilities and Public
Lijghts-of-Wqy. if. within fifteen (15~, davs of the Citv';~puest, Metricom
has not removed abandoned Radios, facilities and ncrsonal pro„lterty, the
Citv may remove such Radios. facilitiesc and personal nrnnerty at Metricom's
ole cost and ~Lrense.
5_ti Cleanup of Contamination Metricogr shall reimburse the City for all costs
of eleanuo accociated with any lea a or contamination from Radios or
Ricochet LVI~pN facilities, reeardless of whether such leakage or
contamination occurred plior to or in the course of removal.
ti, INDEMNIFICATION ANn WAIVER. Metricom agrees to indemnify, defend,
protect, and hold harmless the City, its wurtcil members, commissions. commissioners,
boards, scents, officers, and employees from and against any and all etaims, demands,
losses, damages, liabilities, fines, chazges, penalties, administrative and judicial
proceedings and orders, judgements, and all costs and expenses incurred in connection
therewith, including reasonable attorney's fees and costs of defense (collectively, the
"Losses") directly or proximately resulting from Metricom's activities undenaken
pursuant to this Use Agreement, except to the extent azising from or caused by the
negligence or willful misconduct of the City, its council members, officers, employees,
agents, or contractors. The foregoing notwithstanding, Metricom shall defend and
indemnify the City, and its officers and employees, even in the case of negligence, unless
the allegations allege (a) independent negligence on the part of the City, its officers and
employees or (b) a wrongful act or omission on the part of the City or its officers or
employees. Metricom shall also defend and indemnify the City, its officers and
employees, even in the case of negligence, if the allegations are based on the City's ar iu
officers or employees' negligence or otherwise wrongful act or omission in issuing a
permit to Metricom or approving this Use Agreement, or in failing to properl y or
adequately inspect or enforce compliance with the terms, conditions or purpose of any
pemtit issued to Metricom.
6,1 Waiver of Claims. Metricom waives any and all claims, demands, causes of
action, and rights it may assert against the City on account of any loss, damage, or
injury to any Radio or any loss or degradation of the Services as a result of any
event or raccurrence which is beyond the reasonable control of the City or on
account of City's exercise of its regulatory or police powers.
6.2 Limitation of Ciy'r Liability. ~}te Exg~inr the removal or relocation of
t~,dioa, the City shall be liable only for the cost of repair to damaged Radios
arising from the o •s negligence or willful misconduct of City, its employees,
agents, or contractors.
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7. INSURANCE. Metricom shall obtain and maintain at all times during the term of tJtis
Use Agreement Commercial General Liability insurance and Commercial Automobile
Liability insurance protecting Metricom in an amount no[ less than One Million potters
($1,000,000) per occuaencc (combined single limit), including bodily injury and property
damage, and in an amount not less than One Million Dollars (S 1,000,000) annual
aggregate for each personal injury liability and products-completed operations. 7'he
Commercial General Liability insurance policy shall ttame dte City, its council members,
commissions. commissioners ?gents boarder officers, and employees as additional
insureds as respects any covered liability arising out of Metricom's performance of work
under this Use Agreement. Coverage shall be in an occurrence form and in accordance
with the limits and provisions specified herein. Claims-made policies are not acceptable.
Saeh The Cgguired insurance shall not be canceled, nor shall the occurrence or aggregate
limits set forth above be reduced, until the City has received at least thirty (30) days
advance written notice of such cancellation or change. Mctricom shall be resporuihle for
notifying the City of such change or cancellation, Prior to any five (5) year renewal tcmt,
pursuant to § 2 o}'this Use Agreement, the City may request and the parties shall bargain
in good faith to increase the above minimum insurance amounts, if such an increase is
warranted by industry standards or specific identified risk. Such increase, if any, shall
not be effective until the commencement of'such renewal term.
7.1 Filing of Certificates and Endorsements. Prior to the commencement of any
work pursuant to this Use Agreement, Mctricom shall file with the City the
required original certificate(s) ofinsurance with endorsements, which shall state
the fallowing:
(a) the policy number; name of insurance company; name and address of the
agent or authorized representative; tttune and address of insured; project
name; policy expiration date; and specific coverage amounts;
(h) that the City shall receive thirty (30) days prior notice of cancellation;
(c) that Metricom's Commercial General Liability insurance policy is primary
as respects any other valid or collectible insurance that the City may
possess, including anyself-inseved retentions the City may have; and any
other insurance the City does possess shall be considered excess insurance
only and shall not be required to conVibute with this insurance; and
(d) that Metricom's Commercial General Liability insurance policy waives
any tight of recovery the insurance company may have against the City.
The certificate(s) of insurance with endorsements and notices shall be mailed to
the City at the address specified in § $ 9 below.
7.Z Workers' Compensation losaraace. Metricom shall obtain and maintain at all
times during the term of this Use Agreement statutory workers' compensation and
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employer's liability insurance in an amount not Tess than One Million Dollazs
(S 1.000,000} and shall furnish the City with a certificate showing proof of such
coverage, The City shall not under anv circumstancec he required or
obligated to provide workers' compensation benefits to anv officer empjpvee
agent, contractor nr subcontractor of Me[tie{om
7.3 Ensurer Criteria. Any insurance provider of Metricom shall be admitted and
authorized to do business in the State of Minnesota and shall cant a tninimttm
rating assigned by A. Af Besl & Company s Xey Rattng Guide of `A"Overall and
a Financial Size Category of "X" (i. e., a site of S500,000,000 to $750,000,000
based on capital, surplus, and conditional reserves). Insurance policies and
certificates issued by non-admitted insurance companies are not acceptable.
7.4. Severability of Eoterest. Any deductibles or self-insured retentions must be
stated on the certificate(s) of insurance, which shat! bt stn[ to and approve by the
City. "Severability of interest" or "sepazation of insureds" clauses shall be made a
part of the Commercial General Liability and Commercial Automobile Liability
policies.
8, BOND. Ae the time this Use Agreement becom e(jggsjve and at all rimes
thereafter until Metricom has liquidated all of its obligations tQ the City, Metricom
shall he conditioned upon the faithful~7erformance by Metrigpgr of itc obliga~sns
under this Usc Agreement and_pon the further condition that in the event
McWcom shall fail to romplKwith applicable Laws or with anv orovisfon of this Uce
Agreement tpere shall he recoverable joints and severally from the principal ar~„1
surety of the bond any damages or loss suffgred j:y the Ci as a result indudi7lg the
f t)1 amount of anv compensation indemnification or cost of removal of an_v
pLQpgr~y of Metricom,,plus B ratconable allowance for attorneys' tees and eocts, up
to the full amount otthc bond and further guaranteeing payment by Metricom of
claims. liens and taxes due the City which arise by feason of the construction
2~ration or maintenance of the Ricochet MCDN. The rights reserved by the City
with respect to the bond are in addition to ail other r~htc the Cirv mat have under
this Usc Agreement or aonlicable Laws The City may from year to year in its sole
discretion. reduce the amount of the nerforma»ce bond
9. NOTICES. All notices which shall or may be given pursuant to this Use Agreement
shall be in writing and delivered personalty or transmitted (a} through the United States
mail, by registered or certified mail, postage prepaid; (b) by means oCprepaid overnight
delivery service; or (c) by facsimile or email transrniesion, if a hard copy of the same is
followed by delivery through the U.S, mail or by overnight delivery service as just
described, addressed as follows:
ijto the Ciry:
Sent by: BERNICK LIFSON P.A, 672 5a6 1003; 02/10/00 tf:22AM;htrr, gSf3;Page 75/22
City of [NAME OF MUNICIPALITY)
Attention: (NAME OF CONTACT)
(ADDRESS]
[Name of Municipality, MN [ZIPJ
ijro Merricom
METRICOM, INC.
Attention: Network Real Estate
980 University' Avenue
Los Gatos, CA 95032
8:~ 9_l Date of Notices; Changing Notice Address. Notices shall be deemed given
upon receipt in the case of personal delivery, three {3) days after deposit in the
mail, or the next business day in the case of facsimile, a-mail, or overnight
delivery. Either party may from time to time designate any other address for this
pftrposc by written notice to the other party delivered in the manner set forth
above.
9: J0. TERMINATION. This Usc Agreement may be terminated by tither party upon
fonytive (AS) days prior wririen notice to the other party upon a default of any material
covenant or term hereof by the other party, which default is not cured within fotty-five
(45) days of receip[ of written notice ofdefault (or, if such default is not curable within
forty-five (45) days, if the defaulting party faits to commence such cure within forty-five
(45) days or fails thereafter diligently to prosecute such cure to completion), provided that
the grace period for any monetary default shall be ten (10) days from receipt of notice.
Except as expressly provided herein, the rights granted under this Use Agreement are
irrevocable during the tern,
y8 f 1. ASSIGNMENT. This Use Agreement and any right or interest herein shall not be
transferred or assigned by Merricom without the express prior written consent of the
City, which consent shall not be unreasonably withheld, conditioned, or delayed.
A'otwithstanding the foregoing, the transfer pr assignment of the rights and obligations
of Merricom hereunder to a parent, subsidiary, or financially viable affiliate of Merricom
shat! not be deemed a transfer
' or assignment for the purposes of this Use Agreement. No transfer nr assignment of
this Use Agreement (2r anv interest or r;pht herein~y he agnroved without the
trsneferee becoming a siglLt_a_t~ry to this Use Agreement, and assumine X11 rights and
obligations hereunder.
~2, ~-}. 11[SCELLANEOUS PKOViSIONS. The provisions which follow shall apply
generally to the obligations of rho parties under this Use Agreement.
Sent by; BERNICK LIFSON P.A. 6f2 5a6 f003; 02/f8/00 1f:23AlA; F•~ paf3;Page f6/22
i-1-:1 12.1 Nonexclusive Use. Metricom understands that this Use Agreement does
not provide Metricom with exclusive use of the Public Right-of•Way or
any Mtuucipal Facility and that City shall have the right to permit other
providers ofcommunications services to install equipment or devices in
the Public Right-of_Way and on Municipal Facilities. City agrees
pretttpt}y-le~-to uce reasgpable eftorkc t~romntly notify Metricom of the
receipt of a proposal for the installation of communications equipment or
devices in the Public Right_of_Way or on Municipal Facilities. In
addition, City agrees to Lase nasonable efforts to advise other providers
of communications services of the presence or planned deployment of the
Radios in the Public Right_of_Way and/or on Municipal Facilities.
#.2 d2~2 Waiver of Breach. The waiver by either parry ol'any breach or violation
of any provision of this Use Agreement shall not be deemed to be a waiver
or a continuing waiver of any subsequent breach or violation of the same
or any other provision of this Use Agreement. Anv failure or delay of
City to require or enforce ~ompt compli~oge with the terms of this
Use Agreement shall not be considered a waiver, and Metricom shall
not be relieved of its obl~itions to compjy with this Use Agreement by
virtue of such a failure or deter City may oni~waive its right.
hcreundgr by expresdy so stating in writing-
,~ i-1:3 &everability of Provisions. if any one or more of the pmvisiorts of this
Use Agreement shall be held by a court of competent jurisdiction in a final
judicial action to be void, voidable, or unenforceable, such provision(s)
shall be deemed severable from the remaining provisions of this Usc
Agreement and shall not affect the legality, validity, or constitutionality of
the remaining portions of this Use Agreement; nrnvide4l, however, that if
the City, in its Bole discretion determines that a revered provision
materially alters the contractual relatinnchiP created herein the City
may choose to terminate this Use Agreement with no damages costs
or expenses attributed tglhe Citv. Notwithstanding the foregoing, the
parties agree that if a court or administrative agency of competent
,jurisdiction should declare a provision(s) of § 4 of this Use Agreement
invalid, then the parties shall each be obligated to negotiate in good faith
to amend § 4 of this use Agreement and if, after one hundred and eighty
(1 g0) days from the commencement of negotiations or such extension
thereof that may be agreed by the panics, the parties aze unable to reach
agreement on amendments hereto, then this Use Agreement may be
terminated by either party.
}4-4 L Contacting Metricom. Metricom shall be available to the staff
employees of ttny t~l,g Ciry depmttnettt having jurisdiction over
Metricom's activities twenty-four (24) hours a day, seven (7) days a week,
regarding problems or complaints resulting from the attachment.
Sent by: BEHNICK LIFSON P.A, 6t2 546 tOD3; 02/t6/00 tt:23AlA;jetF,: p813;Page 17/22
installation, operation, maintenance, c a or removal of the Radios
~d the 1~cochet MCDN. The City may contact by telephone the
network control center operator at telephone number (800) 873-3468
regarding such problems or complaints.
fi3 L Governing Law; Jurisdiction. This Use Agreement shall be governed
and construed by and in accordance with the laws of the State of
Minnesota, without reference to its conflicts of law
principles. if snit is brought by a party to this Use Agreement, the parties
agree that trial of suc)t action shall be vested exclusively in the state courts
of Minnesota, County of . or in the United States District Court for
the District of Minnesota.
i-!:6 ,~ Attotroeys' Fees. Should any dispute arising out of this Usc Agreentem
lead to litigation, the prevailing party shall be entitled to recover its costs
of suit up to an amount of Five Thousand [bllazs (55,000.00), including
(without limitation) reasonable artorneys' fees.
i-13 12.7 Consent Criteria, fn any case where the approval or consent of one party
hereto is required, requested or otherwise to be given under this Use
Agreement, such party shall not unreasonably delay, condition, or
withhold its approval or consent.
12.8 R_ghts Cumulativa All n_ghts and remedie~iven to City {ty thic Use
~greeroent or retained by City herein shall he in addition ro and cumulative
shall aot be exclusive fiat each and every ri ght and remedy snecifieally given
lry this Use Agt~eement or otherwise existing _or given m~ be exercised from
~ e 1o time and as often and in such order as may be deemed ex~¢ient by
Ci ty and the exercise ojo ne or more remed ies shall not be deemed a waj_ver
of the right to exercise at the name time orlh sreafter~nrnther right or
reme
,j2.9 i-t:8 Representations and Warranties. Each of the parties to this Agreement
represents and warrants that it has the full tight, power, legal capacity, and
authority to enter into and perform the parties' respective obligations
hereunder and that such obligations shall be binding upon such parry
without the requirement of the approval or mnsent of any other person or
entity in connection herewith, except as provided in § 3.3 above.
i~:9 tz.tn Amendment of Use Agreement. This Use Agreement may not be
amended except pursuant to a wrinen instrument signed by both parties.
x-1:4812.11 Entire Agreement. This Use Agreement contains the antirc
Sent by: BERNICK LIPSON P.A. 612 Safi 1003; 02/18/00 t1:23AM;ktF°a NB13;Page 1B/22
understanding betweenthc parties with respect to the subject matter
herein, There are no representations, agreements, or understandings
(whether oral or written) between or among the parties relating to the
subject matter of this Use Agreement which are not fully expressed herein.
]2.12 BindinE Acrentance This Ilse Agreement shall bind and benefit the parties
hereto and their respective authorired heirs beneficiaries administrators
~ecutors, receivers, trustees. successor; and assigns.
IK WITNESS WI~TEItEOF, and in order to bind themselves legally to the terms and conditions
of this Use Agreement, the duly authorized representatives ofthe parties have executed this Ilse
Agreement as of the Effective Datc.
Ciry: CITY OF _
corporation.
By:
e Minnesota municipal
[name typed]
Its:
Date: , X000
ay:
(name typed]
Its:
Date: , 2000
Merricom: METRICOM, INC., a Delaware corporation.
By:
[name typed]
Its:
Date: , 2000
L'.kaDklMetriwmWSr AOAk4M&Nf I-T CMr WPD
%~
MediaOne
l.aw & Public Policy Department
10 River Park Plaza
St. Paul, MN 55107
Telephone: (651) 312-5281
Facsimile: (651) 312-5288
Kathi Donnelly-Cohen
Director -Government Affairs
February 18, 2000
Ms. Linda Magee
City of Columbia Heights
590 NE 40th Street
Columbia Heights, MN 55421
Dear Linda:
G '6X IIG
~~~,~~ to n~oTdi„~d. Ti,ta is m~,~ar.
In June of 1999, I sent all local franchising authorities a letter regarding changes to premium
services and packages. About a year prior to that, we announced changes in the discounted
packages and ceased selling the older packages. To minimize customer impact, we
"grandfathered" existing customers of the old packages. Since that time, we have worked with
many of the affected subscribers to convert them to a newer package that meets their needs.
Many of these changes are a result of merging three companies with different premium channel
packages, pricing structures, as well the anticipated changes as we add channels through the
network upgrade process.
While we approached this slowly, we now must movo forward over the next few months to
convert the remaining subscribers from the outdated premium pricing packages to the new
packages. As you can see from the attached grid, some changes will take place in April and
others later this year. Individuals affected by these changes range from 4 subscribers in one
package to 681 in another package configuration. Letters will be sent to each subscriber,
detailing their current package and what changes we will make. We provide a direct
dial line to the in-bound sales group to handle the conversions. A subscriber is welcome to make
any changes that may better suit their viewing needs. If they do not select a new package, the
Change noted in the letter will be implemented.
If you have any questions on this conversion, please do not hesitate to contact me.
Sincerely
- cif cl..~'
Kathi Donnelly-Cohen
Director -Government Relations
Cc: David Seykora
EEB, 21. 2000 5:03PU N0, 5320 P, 2/2
MediaOne Promotional Premiulgt Package Audit
Former Meredith System
Current Package Contents Current New Premium Package New package Package
Mo, Rata Contents Price Price
Variance
Notifioation week of 2121
HBO and TMC $13.90 MBO Ala Cage $10.95 ~ ($2.95)
Showlime end TMC $13.90 Showlime Ala Carte &TMC $10.96 ($2.95)
Free For 8 Months
HBO, Showlime and TMC $18.95 Premium Seleq • HBO, $19.95 $1.00
Showlime and TMC
Notification week of 2128
HBO and Cinemax $13.90 Premium Plus -HBO and $15.95 $2.05
Cinemax
~
Showlime and Cinemax $13.90 Showlime Ala Carte $10.95 ($2.95)
H80, Cinemax and Showlime $16.95 Premium Plus -HBO end $1.5.95 ($3.00)
Cinemax
Cinemax and TMC $13.90 TMC Ala Carte $10.95 ($2,95)
HBO, Cinemax and TMC $18.95 HBO Ala Cane & Cinemax $10.95 ($8.00)
free for 6 Months
Showlime, Cinemax entl TMC $18.95 Showtlme Ala Carte & 7MC $10.95 ($8.00)
Free For 6 Months
Notification March -December
MBO and Showlime $13.90 HBO Ala Carte $10.95 ($2.95)
HBO, Cinemax, Showlime entl TMC $21.95 Premium Preferred -HBO, $23.95 $2.00
Cinemax, Showlime and TMC
HBO, HBO Plus, Showtlme, $19.95 Premium Preferred -HBO, $23.95 $4.0
Showlime 2, TMC, Cinemax and the Cinemax, Showlime and TMC
OSPG (No OSPG)
HBO, H80 Plus, Cinemax and the $14.95 Premium Plus -HBO end $15.05 $1.00
OSPG Cinemax (No OSPG)
Showlime and Showlime 2 $10,05 Showlime Ala Carta - (No $10.95 $0.00
Showlime 2)