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CS Technologies - Master Co-Location and Shared Services Agreement 7 18 16 Copyright 2014 City of Dubuque Consent Items # 9. ITEM TITLE: CS Technologies, Inc. Agreement SUMMARY: City Manager recommending approval of a Master Co- Location and Shared Services Agreement between the City of Dubuque and CS Technologies, Inc. to pull fiber through approximately 58,928 feet of City-owned conduit. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve ATTACHMENTS: Description Type Master Co-Location and Shared Services Agreement City Manager Memo With CS Technologies-MVM Memo Master Services Agreement for Co-Location and Shared Services Agreement with CS Technologies- Staff Memo Staff Memo Master Services Agreement for Co-Location and Supporting Documentation Shared Services with CS Technology THE CITY OF Dubuque U E I erica .i Masterpiece on the Mississippi 2007-2012-2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Master Co-location and Shared Services Agreement between the City of Dubuque and CS Technologies, Inc. DATE: July 13, 2016 Information Services Manager Chris Kohlmann recommends City Council approval of a Master Co-Location and Shared Services Agreement between the City of Dubuque and CS Technologies, Inc. CS Technologies proposes to pull fiber through approximately 58,928 feet of City-owned conduit. In summary this includes portions of: • 9th Street and Locust Street; • W. 5th Street and Hill Street to Bryant Street and HWY 20; • HWY 20 and Bryant Street west to HWY 20 and NW Arterial; • Hwy 20 north on NW Arterial to Pennsylvania then west on Middle Road to Radford Road; • NW Arterial and Chavenelle Road west to Public Safety Way then south on Seippel Road; • Hwy 20 north on Wacker Drive to JFK Road then north to Asbury Road; • W 9th Street and University Avenue west to University Avenue and Asbury Road then to Asbury Road and St. Ambrose Street; and • University Avenue and Asbury Road south to University Avenue and Pennsylvania Avenue to Pennsylvania Avenue and Mamora Avenue. CS Technologies will construct approximately 23,673 feet of new conduit for CS Technologies' use in completing the proposed 15.7 miles of new fiber plant. The five new CS Technologies' conduit paths will complete four previously identified high priority City routes, serving two targeted City facilities (Emergency Operations Center— EOC and Dubuque Metropolitan Waste Agency Landfill.) They will also serve two Dubuque Community School District locations (Carver Elementary and Eleanor Roosevelt Middle Schools.) Additionally, CS Technologies' use of City conduit provides fiber access to Fire Station #2 on JFK Road and one Dubuque Community School District School, Irving Elementary School. CS Technologies proposes to provide fiber on portions of this conduit build. In summary this includes portions of: 1. NW Arterial and Chavenelle Road; 2. Chavenelle Road to Public Safety Way and south on Seippel Road; 3. Wacker Drive to Pennsylvania Avenue; 4. Radford Road north to Carver Elementary and Eleanor Roosevelt Middle School; and 5. Seippel Road south onto Hwy 20 to Landfill. I concur with the recommendation and respectfully request Mayor and City Council approval. �1 t 64�- Mic ael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Chris Kohlmann, Information Services Manager 2 THE CITY OF Dubuque DUB E *AmencaMY 11111.1 Masterpiece on the Mississippi 2007.2032.2013 TO: Michael C. Van Milligen, City Manager FROM: Chris Kohlmann, Information Services Manager SUBJECT: Master Co-location and Shared Services Agreement between the City of Dubuque and CS Technologies, INC. DATE: July 12, 2016 INTRODUCTION Like water, energy, sewer and roads, affordable access to globally relevant internet speeds is a minimum infrastructure to support the quality of life of Dubuque families and the competitiveness of area business and industry. To remain competitive, businesses don't just need access to the internet, they need quick and affordable capacity to connect their multiple locations, to connect with service providers located regionally and nationally and to assure their customers of"always on" redundant connectivity. The City of Dubuque in Partnership with Greater Dubuque Development Corporation has been working to define innovative strategies and process to: • Work with the private and public sectors to analyze and communicate "last mile" fiber optic and conduit capacity that already exists here in Dubuque; • Identify additional expansion, services and competition that may be presently under consideration for the Dubuque area and form a team to work quickly to identify how those efforts can be supported and additional investment made more feasible for the Dubuque area; • Create a collaborative process between public and private sectors to identify regulatory process improvements and infrastructure assets that could be available in Dubuque for projects that provide value to the community through enhanced access or reduced costs. Greater Dubuque Development Corporation communicated the new strategy to all regional internet carriers. This memo communicates the scope and terms of a project in partnership with CS Technologies for fiber optic conduit sharing, co-location services and additional fiber optics for City, County and School use. The scope of this project addresses the City Council Five Year City Goal of Improved Connectivity: Transportation and Telecommunications along with Goal 8 of the 2012 Comprehensive Plan referencing communications infrastructure. DISCUSSION CS Technologies http://cstech.com/ is a regional broadband provider and is the wholly owned subsidiary of Central Scott Telephone. Central Scott Telephone has been around since 1902. CS Technologies has grown through the purchasing of small telecoms in the region and adding services. CS Technologies has made purchases in Eastern Iowa, Western Illinois and SW Wisconsin. It has an existing customer base in Dubuque but wants to significantly ramp up efforts via new fiber deployment. It would like to add to it base downtown and extend connections to the west side of Dubuque. The value propositions CS Technologies provides to the City range from building out access to new fiber for the City (to reach places like the EOC) to creation of a dedicated and managed network (12 strands) for the City on the approximately 15 mile route the project encompasses. It is anticipated that the additional capacity CS Technologies will add will be good for business as it improves redundancy/reliability of broadband service downtown and increases access to broadband to the west including the industrial centers. This project is a good "fit" for the process that is taking shape in that the public/private collaboration allows CS Technologies to complete the job much faster while the City is able to leverage extra, unused conduit space to make that happen. CS Technologies is also the "right size" for Dubuque, which is big enough to make a real impact, but small enough to have the "high touch" that our community expects. CS Technologies proposes to utilize City owned conduit as a path on portions of this fiber build. The company proposes to pull fiber through approximately 58,928 feet of City-owned conduit. In summary this includes portions of: • 9th St. and Locust St. CS Technologies vault to W. 5th St. and Hill St. by way of 10th and Bluff Street (3,122'); • W. 5th St. and Hill St. to Bryant St. and HWY 20 (2,139'); • HWY 20 and Bryant St. west to HWY 20 and NW Arterial (17,057'); • Hwy 20 north on NW Arterial to Pennsylvania then west on Middle Rd to Radford Rd. (7,156'); • NW Arterial and Chavenelle Rd. west to Public Safety Way then south on Seippel Rd. (12,376'); • Hwy 20 north on Wacker Dr. to JFK Rd then north to Asbury Rd. (5,896'); • W 9th St and University Ave. west to University Ave. and Asbury Rd. then to Asbury Rd. and St. Ambrose St. (8,875'); and 2 University Ave. and Asbury Rd south to University Ave. and Pennsylvania Ave. to Pennsylvania Ave and Mamora Ave (2,307'). CS Technologies will construct approximately 23,673 feet of new conduit for CS Technologies' use in completing the proposed 15.7 miles of new fiber plant. The five new CS Technologies' conduit paths will complete four previously identified high priority City routes, serving two targeted City facilities (Emergency Operations Center — EOC and Dubuque Metropolitan Waste Agency Landfill.) The fifth lower priority City route will serve two Dubuque Community School District locations (Carver Elementary and Eleanor Roosevelt Middle Schools.) Additionally, CS Technologies use of City conduit provides fiber access to Fire Station #2 on JFK Rd. and one Dubuque Community School District School, Irving Elementary School. CS Technologies proposes to provide fiber on portions of this conduit build. In summary this includes portions of: 1) NW Arterial and Chavenelle Rd. (5,524'); 2) Chavenelle Rd. to Public Safety Way and south on Seippel Rd. (7,553'); 3) Wacker Dr. to Pennsylvania Ave. (1 ,396); 4) Radford Rd. north to Carver Elementary and Eleanor Roosevelt Middle School (1 ,800); and 5) Seippel Rd. south onto Hwy 20 to Landfill (7,400'). Valuation Summary The proposed valuation part of this Agreement states that: The City will provide to CS Technologies: $177,000 in one time use of conduit consideration. Annual revenue credit equivalent of $9,600 for one rack in a communication but at the 3rd St. Water Tower facility. CS Technologies will provide to the City: $166,000 in one time use of conduit consideration. Annual revenue credit equivalent of $12,900 for 4.5 miles of newly installed managed fiber. In addition, CS Technologies will grant a revenue credit equivalent of $32,100 annually for 11 .2 miles of managed fiber within City-owned conduit routes. In locations where fiber is provided by CS Technologies to the City, it will be a 12 strand single mode fiber optic bundle to be terminated at mutually agreeable locations for use by the partners. 3 David Lyons, Greater Dubuque Development Director of Sustainable Innovations, has authored both process and product of the attached Agreement with CS Technologies. David's work in negotiations and crafting the agreement has been a key component and an important aspect of the success of this and future projects of a similar nature. City Attorney Barry Lindahl has reviewed the Agreement and is comfortable with content. The term of this project is 25 years, which may be extended by the mutual agreement of the parties in writing. The advantage to the City is additional fiber optic conduit capacity provided by CS Technologies along the proposed fiber route for use for security cameras, emergency kiosks, data and telephone connections as well as future to be determined uses where conduit doesn't currently exist. Connectivity and fiber optic capacity into the EOC, Fire Station 2, Carver, Roosevelt and Irving schools is intended for use addressing existing fiber optic agreements for the I-Net expiring within the next 5 years. In addition, this partnership at the macro-community level provides another project and steps forward in demonstrating the development of a master plan for driving increased broadband development using a public-private partnership model. The message is Dubuque has capacity, process and intent to move ahead in this space. BUDGETIMPACT This Agreement offers no immediate "budget offset." It does provide an avoided capital expense of trying to lay fiber to locations that are at a far distance to the west of the city as well as in more congested downtown areas. It provides offsets to some future operating costs in maintaining the growing fiber network we have already invested in by introducing a managed fiber agreement for all of the fiber optic assets co-located in the same conduit covered by this Agreement. RECOMMENDATION CS Technologies has served Eastern Iowa, Western Illinois and SW Wisconsin with technology solutions for communications solutions for many years. CS Technologies has offered a fair and equitable proposal for fiber optic, conduit and co-location services. I would recommend proceeding with entering into the agreement for a partnership with CS Technologies as outlined in this memo and the master services agreement. ACTION REQUESTED Please review the memo and Agreement and let me know of any questions. I would respectfully request your approval and would ask that you forward this information to the Dubuque City Council with a recommendation for their approval and execution of the agreement. Thank you. 4 cc: David Lyons, Director of Sustainable Innovation GDDC Jennifer Larson, Budget Director Dave Ness, Traffic Engineer 5 MASTER CO -LOCATION AND SHARED SERVICES AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND CS TECHNOLOGIES, INC. The parties to this Master Shared Services Agreement ("Agreement") are CS Technologies, Inc. (CS TECH), and the City of Dubuque, Iowa (CITY), a municipal corporation organized and existing under the laws of the State of Iowa. The effective date ("Effective Date") of this Agreement shall be as of the last date of execution. RECITALS: • CS TECH desires to co -locate and share services in the Greater Dubuque Region to facilitate the expansion of broadband access, services and choice to its customers. • CITY desires to co -locate and share services in the Greater Dubuque Region to facilitate the expansion of broadband access, services and choice to citizens and businesses, and provision of services to citizens of the community. • Both CS TECH and CITY desire to reduce costs through the sharing of fixed assets and capacity. Now, therefore, in consideration of the promises and covenants contained herein, the Parties do hereby mutually agree as follows: SECTION 1. PROJECT STATEMENTS. In addition to this Master Agreement, CS TECH and CITY agree to develop and sign Project Statements which will further define the description of facilities, responsibilities, technical services and charges and other necessary terms for the implementation of specific co -location and/or sharing activities. In the event of any conflict between any term or condition of this Agreement and a future Project Statement, the terms and conditions of this Agreement will control, unless the conflicting provisions of the Project Statement expressly provide that the Parties intend for such conflicting terms to be given effect for such Project Statement notwithstanding the provisions of this Agreement. Terms contained in a Project Statement that are not contained in, and that do not conflict with, this Agreement shall be given effect. SECTION 2. DESCRIPTION OF TECHNICAL AND SHARED SERVICES 2.1 Use of and Access to CS TECH Co -Location Facilities. CITY shall be responsible for all installation and maintenance of its equipment at a CS TECH site, unless otherwise agreed to in writing by CS TECH. Such installation and maintenance shall be conducted in accordance with any and all rules as CS TECH might from time to time create and which include but are not limited to those contained in Exhibit A 1, attached hereto and incorporated herein by reference. All CITY equipment shall remain the sole property and responsibility of CITY. Escorted access to a CS TECH POP shall be required for all work done by CITY employees, or the employees of any firm the CITY retains on a permanent or part-time basis to provide installation or maintenance service of the CITY's equipment unless otherwise agreed to by CS TECH. For non- emergency access, CS TECH shall make access available to CITY within five (5) business days of CS TECH acknowledgement of receipt of notice from CITY unless specified differently in any Project Statement, or as soon thereafter as reasonably possible. If CITY requests emergency access to the CS TECH POP, CS TECH shall provide such access as soon as reasonably possible. All CITY POP access shall be with the escort of a member of CS TECH Datacenter Operations team. 2.2 Permission to Work at CS TECH facilities. Plans for CITY Co -Location as described in any Project Statement shall be completed by CITY and shall be submitted in writing to the designated contact specified under Section 8 of this Agreement prior to commencement of any work. Such plans or subsequent major alterations thereof must have the written approval of the designated contact specified under Section 8 of this Agreement prior to commencement of any work. CITY shall also advise the designated contact specified under Section 8 of this Agreement of security arrangements and the names of those persons authorized to enter the CS TECH POP to work on CITY'S equipment. 2.3 Interconnection at CS TECH facilities. The Parties agree that CITY'S co -location with CS TECH is for the primary purpose of housing and operating CITY'S equipment connected to CITY'S network. CS TECH, at its sole discretion, may permit CITY interconnection with a third party within a CS TECH POP and if permitted, shall be only upon CS TECH prior written consent. 2.4 Non-exclusive Placement of Fiber in CS TECH Conduit. CITY may non -exclusively use CS TECH conduit for the installation of fiber at its sole cost and expense and as approved within a Project Statement. The use of the conduit shall be non-exclusive and CS TECH shall have the right to use said conduit and allow other permittees to use the conduit. CITY shall also have the right to use the CS TECH hand -holes located in the area for the purpose of installing the fiber. This use shall include the right to penetrate the hand -holes with inter -duct for the purpose of installing the fiber. After the installation, CITY shall restore the site of installation to its pre -installation condition. CS TECH shall have the right at any time, with 120 day notice, to require CITY at CITY'S sole cost and expense to remove or relocate the fiber placed in the conduit by CITY (or other items installed in the conduit by CIT() should it be deemed necessary by CS TECH for any reason, in CS TECH sole discretion, including the repair, replacement, inspection or relocation of the conduit. If CS TECH requires CITY to remove the fiber, CS TECH shall provide to CITY a reasonable opportunity to install conduit in a different location which will allow CITY to -2- replace the removed fiber. CS TECH shall not be liable to CITY for any damages CS TECH or its agents or employees causes to said fiber (or other items) for any reason including repairing, replacing, inspecting, relocating or working on the conduit. CITY hereby releases and discharges CS TECH from any and all liability, costs, expenses, claims, demands or suit CITY may have against CS TECH arising out of CITY'S installation, use, or maintenance of said fiber. CITY hereby agrees to hold CS TECH harmless and does undertake to fully indemnify CS TECH from any claims made against CS TECH arising out of CITY'S use of the conduit. At all times CITY has fiber in CS TECH conduit CITY shall provide insurance as described in the attached Insurance Schedule, Exhibit B 1 as such schedule may from time to time be amended. 2.5 Use of and Access to CITY Co -Location Facilities. CS TECH shall be responsible for all installation and maintenance of its equipment at a CITY site, unless otherwise agreed to in writing by CITY. Such installation and maintenance shall be conducted in accordance with any and all rules as CITY might from time to time create and which include but are not limited to those contained in tbit AQ, attached hereto and incorporated herein by reference. All CS TECH equipment shall remain the sole property and responsibility of CS TECH. Escorted access to a CITY POP shall be required for all work done by CS TECH employees, or the employees of any firm that CS TECH retains on a permanent or part-time basis to provide installation or maintenance service of the CS TECH equipment unless otherwise agreed to by CITY. For non -emergency access, CITY shall make access available to CS TECH within five (5) business days of CITY'S acknowledgement of receipt of notice from CS TECH unless specified differently in any Project Statement, or as soon thereafter as reasonably possible. If CS TECH requests emergency access to the CITY POP, CITY shall provide such access as soon as reasonably possible. All CS TECH POP access shall be with the escort of a member of CITY'S Information Services team. 2.6 Permission to Work at CITY facilities. Plans for CS TECH Co -Location as described in any Project Statement shall be completed by CS TECH and shall be submitted in writing to the designated contact specified under Section 8 of this Agreement prior to commencement of any work. Such plans or subsequent major alterations thereof must have the written approval of the designated contact specified under Section 8 of this Agreement prior to commencement of any work. CS TECH shall also advise the designated contact specified under Section 8 of this Agreement of security arrangements and the names of those persons authorized to enter the CITY POP to work on CS TECH equipment. 2.7 Interconnection at CITY facilities. The Parties agree that CS TECH co -location with CITY is for the primary purpose of housing and operating CS TECH equipment connected to CS TECH network. CITY, at its sole discretion, may permit CS TECH interconnection with a third party within a CITY POP and if permitted, shall be only upon CITY'S prior written consent. 2.8 Non-exclusive Placement of Fiber in City Conduit. CS TECH may non -exclusively use city conduit for the installation of fiber at its sole cost and expense and as approved within a Project Statement. The use of the conduit shall be non-exclusive and CITY shall have the right to use said conduit and allow other permittees to use the conduit. CS TECH shall also have the right to use the city hand -holes located in the area for the purpose of installing the fiber. This use shall include the right to penetrate the hand- -3- holes with inter -duct for the purpose of installing the fiber. After the installation, CS TECH shall restore the site of installation to its pre -installation condition. There shall be no above ground cabinets or markers in the right-of-way. CITY shall have the right at any time, with 120 day notice, to require CS TECH at CS TECH sole cost and expense to remove or relocate the fiber placed in the conduit by CS TECH (or other items installed in the conduit by CS TECH) should it be deemed necessary by CITY for any reason, in CITY's sole discretion, including the repair, replacement, inspection or relocation of the conduit, road or utilities in the right-of-way. If CITY requires CS TECH to remove the fiber, CITY shall allow CS TECH a reasonable opportunity to install conduit in a different location which will allow CS TECH to replace the removed fiber. CITY shall not be liable to CS TECH for any damages CITY or its agents or employees causes to said fiber (or other items) for any reason including repairing, replacing, inspecting, relocating or working on the conduit or roadway or while installing, inspecting, maintaining, repairing or working on any utilities within said right-of-way area. CS TECH shall be responsible for taking any and all action necessary to become a member of Diggers Hotline or appropriate "One Call network", and abide by all "One Call Network" rules and regulations and shall further be required to make arrangements for marking the location of its fiber as is necessary to protect said fiber in case of any digging in the area. CS TECH hereby releases and discharges CITY from any and all liability, costs, expenses, claims, demands or suit CS TECH may have against CITY arising out of CS TECH installation, use, or maintenance of said fiber. CS TECH hereby agrees to hold CITY harmless and does undertake to fully indemnify CITY from any claims made against CITY arising out of CS TECH use of the conduit. At all times CS TECH has fiber in CITY's conduit CS TECH shall provide insurance as described in the attached Insurance Schedule,mit B 2, as such schedule may from time to time be amended by CITY. SECTION 3. NON-INTERFERENCE. Neither Party shall interfere with the other Party's equipment or the installation, operation, and maintenance of such equipment. CITY shall not interfere with any of CS TECH other customer's equipment or the installation, operation and maintenance of such equipment. CS TECH shall not interfere with any of CITY'S other partner's equipment or the installation, operation and maintenance of such equipment. The Parties agree that if CS TECH or CITY determines that the other's equipment is interfering with the normal operation of CS TECH or CITY's network or facilities, then it has the right, with notice to the other's network management center, to disconnect the other's offending equipment. CS TECH or CITY shall notify the other of the situation and allow the other to reconnect once the trouble -causing condition(s) has been resolved. SECTION 4. CHARGES - TERMS The Project Statements will more fully describe the Charges and Payment Terms provided under this Agreement. -4- SECTION 5. INDEMNIFICATION. Each Party shall indemnify, defend and hold the other harmless from and against any and all damages suffered by the other including but not limited to damages to the other's or third party equipment or facilities as well as claims and liabilities asserted against the other by third parties arising out of: (a) the actions of the Party, its employees and agents at the other's sites subject to this Agreement or any Project Statement or (b) the failure of the Party to perform in accordance with the terms and conditions of this Agreement or any Project Statement. The Party shall indemnify, defend and hold harmless from and against any and all damages suffered by the other and claims and liabilities asserted against the other directly arising out of the gross negligence or intentional misconduct of the Party, its employees or agents at the Parties sites subject to this Agreement or any Project Statement. Notwithstanding the foregoing, neither Party shall be liable to the other for indirect, special or consequential damages. SECTION 6. TERM. This Agreement shall become effective on the Effective Date and shall continue until such time as all Project Statements have expired or have been terminated pursuant to this Agreement, or until the mutual written agreement of the Parties. SECTION 7 RIGHT TO TERMINATE. Either Party to this Agreement will have the right to immediately terminate this Agreement without further obligation on its part under the following conditions: 7.1 If at any time during the term of this Agreement a petition in bankruptcy of insolvency or for the reorganization or for the appointment of a receiver or trustee of all or substantially all of the other Party's assets is filed against the other Party in any court pursuant to any statute, either of the United States or of any state, and the other Party fails to secure a discharge thereof within one hundred twenty (120) days, or if the other Party voluntarily files a petition in bankruptcy or makes an assignment for the benefit of creditors or petitions for or enters into any arrangement with creditors. 7.2 In the event the other Party fails to perform or performs improperly any obligation under this Agreement or a Statement of Work, provided such failure or improper performance has not been cured or rectified by the defaulting Party within thirty (30) days after its receipt of written notification of cancellation, or in the event of a cure which requires in excess of thirty (30) days to complete, if the other Party has not commenced such cure within thirty (30) days of such notice and is not diligently prosecuting said cure to completion. 7.3 In the event that any certificate, permit, license or approval applied for or issued is canceled, expires, lapses, or is otherwise withdrawn or terminated by governmental authority so that the site may not be used for its intended purposes or the site is unsatisfactory or becomes unsatisfactory for the intended purpose. 7.4 In the event that any lease a Party has to use the site is terminated, lapses or expires. -5- 7.5 In the event termination under this Section is the result of a Party's decision, conduct or circumstance as herein described, the Party shall be required to account for Termination Liability as follows: Party shall pay to the other any and all documented unpaid expenses to date attributable to the provision of services and shall reimburse for any reasonable costs incurred by the other in effecting the termination. SECTION 8. NOTICES. 8.1 The following contact information is to be used for formal notices and any other times an exchange of correspondence or billing information is required between CS TECH and CITY: (1) Billing Address: CS TECH: Julie Anderson, Office Manager CS Technologies, Inc. 125 N 2nd Street, Eldridge IA 52748 Email: Iulie@cstech.com Phone: 563-285-7862 Fax: 563-285-9648 CITY: Finance Department, City of Dubuque 50 W. 13th Street, Dubuque, IA 52001 Email: Finance@cityofdubuque.org Phone: 563-589-4141 Fax 563-690-6689 (2) Correspondence Address: CS TECH: Donn Wilmott, General Manager CS Technologies, Inc. 125 N 2nd Street, Eldridge IA 52748 Email: donn@cstech.com Phone: 563-285-5717 CITY: City Clerk, City of Dubuque 50 W. 13th Street, Dubuque, IA 52001 Email: CtyClerk(c@cityofdubuque.org Phone:563-589-4100 Fax: 563-589-0890 (3) Engineering, Operations and Technical Correspondence: CS TECH: Brent Lindle, Operations Manager CS Technologies, Inc. 125 N 2nd Street, Eldridge IA 52748 Email: brent@cstech.com Phone: 563-285-5720 CITY: Chris Kohlmann, Manager Information Services Department City of Dubuque 1300 Main Street, Dubuque, IA 52001 Email: ckohlman@cityofdubuque.org Phone: 563-589-4281 Cell: 563-599-2695 (4) Network Management Center (Emergency contacts): CS TECH: Brent Lindle, Operations Manager CS Technologies, Inc. 125 N 2nd Street, Eldridge IA 52748 Email: support@cstech.com Phone: 563-285-9611 CeII: 563-370-0792 CITY: Chris Kohlmann, Manager Information Services Department City of Dubuque 1300 Main Street, Dubuque, IA 52001 Email: ckohlman@cityofdubuque.org Phone: 563-589-4281 Cell: 563-599-2695 -6- (5) Escorted Access request line (twenty-four (24) hours per day, seven (7) days per week): CS TECH: 563-285-5720 Cell: 563-370-0792 or send email to: CS TECH: support@cstech.com CITY: 563-589-1722 Cell: 563-599-3107 or send email to: CITY: dness@cityofdubuque.org 8.2 Each Party agrees to notify the other Party in the event of changes in the above information. SECTION 9. ASSIGNMENT. This Agreement shall be binding upon and shall inure to the benefit of the assignees, transferees or successors of the Parties, provided that neither Party shall assign, transfer or sublet any of its rights or obligations hereunder without prior written consent of the other Party which consent shall not be unreasonably withheld. Assignment between a Party and a majority owned parent, affiliate, or subsidiary shall not require the consent of the other Party. SECTION 10. LIABILITY INSURANCE. Each Party shall at all times during the term of this Agreement and any subsequent terms thereof, provide insurance as described in the attached Insurance Schedules clot( , as such schedules may from time to time be amended. SECTION 11. MAINTENANCE ACTIVITY. Each Party shall notify the other of co -location or related system maintenance needs that require scheduled downtime. No such non -emergency downtime shall be scheduled without prior approval of the other. The other shall be notified as soon as reasonably possible in the event a Party is required to perform nonscheduled, emergency maintenance that may impact the other's equipment or service. SECTION 12. FORCE MAJEURE. Neither Party shall be liable for any delay in performance or inability to perform caused by a Force Majeure Event (as hereinafter defined). As used herein, "Force Majeure Event" shall mean any act or omission of any governmental authority, fires, strikes, lockouts, labor disputes, terrorism, sabotage, acts or omissions of the other Party (irrespective of whether excused), acts of a third party, and any other act of God, event or occurrence, irrespective of whether similar to the foregoing, that is beyond the reasonable control of the Party claiming the Force Majeure Event that affects its ability to perform. A Force Majeure Event shall be deemed to be terminated when its effects on future performance have been substantially eliminated. A Party claiming a Force Majeure Event shall provide the other Party prompt notice of the initiation of the Force Majeure Event and of the termination of such event., Notwithstanding the foregoing provisions, settlement of a strike, lockout, or other labor dispute shall be deemed beyond the control of the Party claiming excuse thereby regardless of the cause of, or the ability of such Party to settle such dispute. -7- SECTION 13. REPRESENTATIONS AND WARRANTIES. 13.1 As an inducement to enter into this Agreement and to consummate the transactions contemplated herein, CITY hereby covenants, represents and warrants to CS TECH as follows: (1) CITY is an Iowa municipal corporation duly organized, validly existing and in good standing under the laws of the State of Iowa, with adequate power and authority to enter into this Agreement, and has or will take all action necessary to enable it to conduct all activity contemplated by this Agreement or Project Statements prior to undertaking such activity. (2) This Agreement has been duly authorized, executed and delivered by CS TECH and, assuming due authorization, execution and delivery by CITY, constitutes a valid, legal and binding agreement, enforceable against CS TECH in accordance with its terms, except to the extent that the enforceability of remedies herein provided may be limited under applicable laws relating to specific performance, bankruptcy and creditors' rights. (3) No approval, consent or withholding of objections is or will be required from any federal, state or local governmental authority or instrumentality with respect to the entry into or performance of this Agreement by CS TECH, except such as have already been obtained. 13.2 As an inducement to enter into this Agreement and to consummate the transactions contemplated herein, CS TECH hereby covenants, represents and warrants to CITY as follows: (1) CS TECH is a corporation duly organized, validly existing and in good standing under the laws of the State of Iowa with adequate power and authority to enter into this Agreement, and has or will take all action necessary to enable it to conduct all activity contemplated by this Agreement or Project Statements prior to undertaking such activity. (2) This Agreement has been duly authorized, executed and delivered by CITY and, assuming due authorization, execution and delivery by CS TECH, constitutes a valid, legal and binding agreement, enforceable against CITY in accordance with its terms, except to the extent that the enforceability of remedies herein provided may be limited under applicable laws relating to specific performance, bankruptcy and creditors' rights. (3). No approval, consent or withholding of objections is or will be required from any federal, state or local governmental authority or instrumentality with respect to the entry into or performance of this Agreement by CITY, except such as have already been obtained. -8- SECTION 14. MISCELLANEOUS. 14.1 The paragraph headings used herein are for convenience only and shall not be construed in interpreting this Agreement. 14.2 Each paragraph and provision of this Agreement is severable from the entire Agreement, and if one provision shall be declared invalid, the other provisions shall remain in full force and effect without regard to the invalidity of said provision. 14.3 The failure of either Party to enforce any of the provisions of this Agreement or the waiver thereof in any instance shall not be construed as a general waiver or relinquishment on its part of any such provisions, but the same shall, nevertheless, be and remain in full force and effect. 14.4 The terms of this Agreement constitute the entire Agreement between the Parties and no previous communications, representations or agreements, either oral or written, between the Parties with respect to the subject matter hereof shall vary the terms of this Agreement. This Agreement is subject to modification if mutually agreed by the Parties in writing. 14.5 Any notice or request required or desired to be given or made hereunder shall be in writing and shall be effective if delivered in person or sent by certified mail, return receipt requested, and received by the recipient Party at the address previously indicated or such other address as shall hereafter be furnished by a Party in writing, from time to time, to the other Party. 14.6 This Agreement and performance thereunder shall be governed by the laws of the State of Iowa. Signed and in effect by the Parties on the date last written below. CITY: CS TECH: City of Dubuque CS Technologies, Inc. NAME: Michael Van Milligan NAME: Donn S. Wilmott TITLE: Dubuque City Manager TITLE: CEO and General Manager DATE: /lV;17 DATE: / -9- Exhibit Co -Location Rules and Policies - CS TECH CITY is responsible for following and ensuring its agents and representatives follow these Co -location Rules and Policies concerning use of and access to CS TECH POP and co -location space. CS TECH reserves the right, in its sole discretion, to suspend or terminate service if CITY or any CITY representative violates the rules and policies set forth below. Access to CS TECH POP Only those individuals identified in writing by CITY on the Co -Location Agreement may access CS TECH POP. CITY shall deliver prior written notice to CS TECH of any changes to the list of authorized representatives. CITY and its authorized representatives shall not allow any other persons to have access to or enter the CS TECH POP. CITY and its authorized representatives may only access that portion of CS TECH POP made available by CS TECH to CITY for the placement of CITY'S equipment and use of the Co - location Services (the "City Space"). CITY must obtain the proper CS TECH authorization and be accompanied by a CS TECH representative, as required, prior to accessing any area within a CS TECH Facility. Failure to do so may result in immediate termination of CITY'S services. In addition, • City agrees to observe and follow all current rules, policies and procedures for each CS TECH site where CITY obtains services. • Security Access. CITY shall comply with the security access procedures for the specific CS TECH Facility. • CS TECH Access. CS TECH reserves the right to open, inspect, disconnect and recover CITY equipment that is overheating, smoking, etc. • Equipment. CITY equipment must be UL -certified. Conduct at CS TECH POP CITY and its authorized representatives agree to adhere to and abide by all security and safety measures in effect at a particular CS TECH facility. CITY is responsible for keeping its City Space clear and free of debris and refuse at all times. CITY and its authorized representatives shall not: Breach or attempt to breach, the security at a CS TECH Facility; Misuse or abuse or otherwise interfere with any property or equipment of CS TECH, CS TECH other Customers, or another third party; • Harass any individual, including representatives of CS TECH and of other CS TECH Customers. -1- • Engage in any activity that is in violation of the law or aids or assists any criminal activity while on CS TECH property. • Permit any explosive, flammable or combustible material or any hazardous or toxic materials to be located in or about the Co -location Site; • Bring in food or beverages; tobacco products; alcohol; illegal drugs; other intoxicants; magnetic objects or electro -magnetic devices which could reasonably interfere with computer and telecommunications equipment; or photographic or recording equipment of any kind (except data back-up equipment). Equipment and Connections Each piece of CITY'S equipment installed in a CS TECH Facility must be clearly labeled with CITY'S name (or code name provided in writing to CS TECH), and individual component identification. Each connection to and from a piece of CITY equipment shall be clearly labeled with CITY'S name (or code name provided in writing to CS TECH), and the starting and ending point of the connection. CITY is responsible for all CITY equipment. CITY equipment must be configured and run at all times in compliance with the manufacturer's specifications, including power outlet, power consumption and clearance requirements. CITY must use its best efforts to provide CS TECH with at least 24 hours prior notice any time it intends to connect or disconnect any CITY equipment or other equipment. CITY shall not place any hardware or other equipment in the CS TECH Facility that has not been identified in writing to CS TECH. Online Content CITY acknowledges that CS TECH has no control whatsoever over the content of the information passing through CITY'S site(s). Modification of Rules and Regulations CS TECH reserves the right to amend, alter or modify these rules and policies at any time in its sole and absolute discretion. Any amendment or modification is effective when posted and emailed to CITY per Section 8, and any use of the CS TECH services after posting will be considered acceptance of the amendment or modification. -2- Exhibit A Co -Location Rules and Policies - CITY CS TECH is responsible for following and ensuring its agents and representatives follow these Co -location Rules and Policies concerning use of and access to CITY'S POP and co -location space. CITY reserves the right, in its sole discretion, to suspend or terminate service if CS TECH or any CS TECH representative violates the rules and policies set forth below. Access to CITY POP Only those individuals identified in writing by CS TECH on the Co -Location Agreement may access CITY'S POP. CS TECH shall deliver prior written notice to CITY of any changes to the list of authorized representatives. CS TECH and its authorized representatives shall not allow any other persons to have access to or enter the CITY POP. CS TECH and its authorized representatives may only access that portion of CITY'S POP made available by CITY to CS TECH for the placement of CS TECH equipment and use of the Co -location Services (the "CS TECH Space"). CS TECH must obtain the proper CITY authorization and be accompanied by a representative of CITY'S Information Service Office, as required, prior to accessing any area within a CITY Facility. Failure to do so may result in immediate termination of CS TECH services. In addition, • CS TECH agrees to observe and follow all current rules, policies and procedures for each CITY site where CS TECH obtains services. • Security Access. CS TECH shall comply with the security access procedures for the specific CITY Facility. • CITY Access. CITY reserves the right to open, inspect, disconnect and recover CS TECH equipment that is overheating, smoking, etc. • Equipment. CS TECH equipment must be UL -certified. Conduct at CITY POP CS TECH and its authorized representatives agree to adhere to and abide by all security and safety measures in effect at a particular CITY facility. CS TECH is responsible for keeping its CS TECH Space clear and free of debris and refuse at all times. CS TECH and its authorized representatives shall not: • Breach or attempt to breach, the security at a CITY Facility; • Misuse or abuse or otherwise interfere with any property or equipment of CITY, CITY'S other partners, or another third party; • Harass any individual, including representatives of CITY and of other CITY partners. -1- • Engage in any activity that is in violation of the law or aids or assists any criminal activity while on CITY property. • Permit any explosive, flammable or combustible material or any hazardous or toxic materials to be located in or about the Co -location Site; • Bring in food or beverages; tobacco products; alcohol; illegal drugs; other intoxicants; magnetic objects or electro -magnetic devices which could reasonably interfere with computer and telecommunications equipment; or photographic or recording equipment of any kind (except data back-up equipment). Equipment and Connections Each piece of CS TECH equipment installed in a CITY Facility must be clearly labeled with CS TECH name (or code name provided in writing to CITY), and individual component identification. Each connection to and from a piece of CS TECH equipment shall be clearly labeled with CS TECH's name (or code name provided in writing to CITY), and the starting and ending point of the connection. CS TECH is responsible for all CS TECH equipment. CS TECH equipment must be configured and run at all times in compliance with the manufacturer's specifications, including power outlet, power consumption and clearance requirements. CS TECH must use its best efforts to provide CITY with at least 24 hours prior notice any time it intends to connect or disconnect any CS TECH equipment or other equipment. CS TECH shall not place any hardware or other equipment in the CITY Facility that has not been identified in writing to CITY. Online Content CS TECH acknowledges that CITY has no control whatsoever over the content of the information passing through CS TECH site(s). Modification of Rules and Regulations CITY reserves the right to amend, alter or modify these rules and policies at any time in its sole and absolute discretion. Any amendment or modification is effective when posted and emailed to CS TECH per Section 8, and any use of the CITY services after posting will be considered acceptance of the amendment or modification. -2- Exhibit Notice of Insurance Coverage for City of Dubuque See Attached City of Dubuque - Certificate of Liability Insurance Exhibit Notice of Insurance Coverage for CS TECH See Attached Central Scott Telephone's subsidiary CS Technologies, Inc. Certificate of Liability Insurance City of Dubuque Insurance Requirements for General, Artisan or Trade Contractors, Subcontractors or Sub Subcontractors Class A: Class B: Class C: Asbestos Removal Asphalt Paving Concrete Construction Managers Cranes Culverts Decking Demolition Deconstruction Earthwork Electrical Elevators Fiber Optics Fire Protection Fireproofing General Contractors HVAC Mechanical Paving & Surfacing Chemical Spraying Doors, Window & Glazing Drywall Systems Fertilizer Application Geotech Boring Insulation Finish Carpentry Landscaping Carpet Cleaning Carpet & Resilient Flooring Caulking & Sealants Acoustical Ceiling Filter Cleaning General Cleaning Grass Cutting Janitorial Non Vehicular Snow & Ice Removal Office Furnishings Power Washing Tile & Terrazzo Flooring Window Washing Piles & Caissons Plumbing Retaining Walls Reinforcement Roofing Sanitary Sewers Sheet Metal Site Utilities Shoring Special construction Masonry Vehicular Snow Removal Painting & Wall Covering Pest Control Scaffolding Sidewalks Plastering Rough Carpentry Steel Storm sewers Structural Steel Trails Tunneling Water main Stump Grinding Tank Coating Tree Removal Tree Trimming Tuckpointing Waterproofing Well Drilling Insurance Schedule B (continued) INSTRUCTIONS FOR INSURANCE SUBMITTAL: 1. Contractor shall furnish a signed Certificate of Insurance to the City of Dubuque, Iowa for the coverage required in Exhibit I prior to commencing work and at the end of the project if the term of work is longer than 60 days. Providers presenting annual certificates shall present a Certificate at the end of each project with the final billing. Each Certificate shall be prepared on the most current ACORD form approved by the Iowa Department of Insurance or an equivalent. The issued certificate must clearly indicate the project number, project name, or project description for which it is being provided Eg: Project # Project name: or Project Location at or construction of 2. All policies of insurance required hereunder shall be with a carrier authorized to do business in Iowa and all carriers shall have a rating of A or better in the current A.M. Best's Rating Guide. 3. Each Certificate required shall be furnished to the City of Dubuque Department. 4. Failure to provide minimum coverage shall not be deemed a waiver of these requirements by the City of Dubuque. Failure to obtain or maintain the required insurance shall be considered a material breach of this contract. 5. Subcontractor(s) and sub subcontractor(s) performing work or service shall provide a Certificate of Insurance in accord with its' respective classification. The City of Dubuque may request a copy of a subcontractor(s) Certificate of Insurance from the general contractor. 6. All required endorsements to various policies shall be attached to the Certificate of insurance. 7. Whenever an ISO form is referenced the current edition must be used. 8. Provider shall be required to carry the minimum coverage/limit, or greater if required by law or other legal agreement, in Exhibit I - Insurance Schedule B. If the provider's limit of liability is higher than the required minimum limit then the provider's limit shall be this agreement's required limit. Insurance Schedule B (continued) Exhibit 1 A) COMMERCIAL GENERAL LIABILITY General Aggregate Limit Products -Completed Operations Aggregate Limit Personal and Advertising Injury Limit Each Occurrence Fire Damage Limit (any one occurrence) Medical Payments $2,000,000 $2,000,000 $1,000,000 $1,000,000 $ 50,000 $ 5,000 a) Coverage shall be written on an occurrence, not claims made, form. The general liability coverage shall be written in accord with ISO form CG0001 or business owners form BP0002. All deviations from the standard ISO commercial general liability form CG 0001, or Business owners form BP 0002, shall be clearly identified. b) Include ISO endorsement form CG 25 04 "Designated Location(s) General Aggregate Limit" or CG 25 03 "Designated Construction Project (s) General Aggregate Limit" as appropriate. c) Include endorsement indicating that coverage is primary and non-contributory. d) Include endorsement to preserve Governmental Immunity. (Sample attached). e) Include an endorsement that deletes any fellow employee exclusion. f) Include additional insured endorsement for: The City of Dubuque, including all its elected and appointed officials, all its employees and volunteers, all its boards, commissions and/or authorities and their board members, employees and volunteers. Use ISO form CG 20 10. Ongoing operations. g) All contractors shall include The City of Dubuque (per the above verbiage) as an additional insured for completed operations under ISO form CG 2037 during the project term and for a period of two years after the completion of the project. B) AUTOMOBILE LIABILITY $1,000,000 (Combined Single Limit) C) WORKERS' COMPENSATION & EMPLOYERS LIABILITY Statutory Benefits covering all employees injured on the job by accident or disease as prescribed by Iowa Code Chapter 85. Coverage A Coverage B Statutory—State of Iowa Employers Liability Each Accident Each Employee -Disease Policy Limit -Disease $100,000 $100,000 $500,000 Policy shall include an endorsement providing a waiver of subrogation to the City of Dubuque. Coverage B limits shall be greater if required by Umbrella Carrier. D) Umbrella Liability Umbrella liability coverage must be at least following form with the underlying policies included herein. All Class A contractors with contract values in excess of $10,000,000 must have an umbrella of $10,000,000. All Class A and Class B contractors with contract values between $500,000 and $10,000,000 must have an umbrella of $3,000,000. All Class A and B contractors with contract values less than $500,000 must have an umbrella of $1,000,000. All Class C contractors are not required to have an umbrella. E) Pollution Liability Coverage required: yes no Pollution Liability coverage shall be required if project involves any pollution exposures including abatement of hazardous or contaminated materials including, but not limited to, the removal of lead, asbestos, or PCB's. Pollution product and complete operations coverage shall also be covered. $2,000,000 each occurrence $4,000,000 policy aggregate a) Policy to include premises and transportation coverage. b) Include additional insured as stated in Ae above. c) Include preservation of governmental immunity as stated in Ad above. F) Railroad Protective Liability Coverage required: yes no Any Contract for construction or demolition work on or within Fifty feet (50') from the edge of the tracks of a railroad and effecting any railroad bridge or trestle, tracks, roadbeds, tunnel, underpass, or crossing for which an easement or license or indemnification of the railroad is required, shall require evidence of the following additional coverages. Railroad Protective Liability: OR each occurrence (per limits required by Railroad) policy aggregate (per limits required by Railroad) An endorsement to the Commercial General Liability policy equal to ISO CG 2417 (Contractual Liability -Railroads). A copy of this endorsement shall be attached to the Certificate of Insurance. Preservation of Governmental Immunities Endorsement 1. Nonwaiver of Governmental Immunity. The insurance carrier expressly agrees and states that the purchase of this policy and the including of the City of Dubuque, Iowa as an Additional Insured does not waive any of the defenses of governmental immunity available to the City of Dubuque, Iowa under Code of Iowa Section 670.4 as it is now exists and as it may be amended from time to time. 2. Claims Coverage. The insurance carrier further agrees that this policy of insurance shall cover only those claims not subject to the defense of governmental immunity under the Code of Iowa Section 670.4 as it now exists and as it may be amended from time to time. Those claims not subject to Code of Iowa Section 670.4 shall be covered by the terms and conditions of this insurance policy. 3. Assertion of Government Immunity. The City of Dubuque, Iowa shall be responsible for asserting any defense of governmental immunity, and may do so at any time and shall do so upon the timely written request of the insurance carrier. 4. Non -Denial of Coverage. The insurance carrier shall not deny coverage under this policy and the insurance carrier shall not deny any of the rights and benefits accruing to the City of Dubuque, Iowa under this policy for reasons of governmental immunity unless and until a court of competent jurisdiction has ruled in favor of the defense(s) of governmental immunity asserted by the City of Dubuque, Iowa. No Other Change in Policy. The above preservation of governmental immunities shall not otherwise change or alter the coverage available under the policy. SPECIMEN PROJECT STATEMENT: Sharing agreement # 1 between CS Technologies, Inc. and City of Dubuque Pursuant to the Master Co -locations and Shared Services Agreement between City of Dubuque and CS Technologies Inc. dated July , 2016 and attached hereto, the Parties hereby agree to the following PROJECT STATEMENT: Narrative description of co -location and service sharing: CS TECH proposes to use existing CITY owned conduit plus the placement of new CS TECH owned conduit to bring fiber services to underserved areas. This will help the City of Dubuque to attract future economic growth while connecting critical CITY locations on the west edge of town. This investment in the CITY is anticipated to be phase one of CS TECH's fiber expansions into Dubuque, IA. CS TECH also proposes to place network equipment at the CITY owned 3rd Street colocation site (near water tower) for the exchange of services with the CITY and others. This CS TECH fiber build is targeted to complete during 2016 with an external cost in excess of $475,000. This initial investment includes over $315,000 to build four of the CITY's high priority routes, passing two targeted CITY facilities and one lower priority CITY route passing two Dubuque Community School District locations. These key CITY sites include: Dubuque Metropolitan Waste Agency Landfill, Emergency Operations Center, Carver Elementary and the Eleanor Roosevelt Middle School. Once complete, CS TECH will also provide 12 single -mode fibers to the CITY on all routes within this Project Statement. Co -location or service site: The CITY's 3rd Street Water Tower site will be a location where CS TECH will place network equipment for the exchange of services with the CITY and others such as WIN. Scope of shared service to be provided by CITY to CS TECH: CS TECH proposes to utilize CITY owned conduit as a path on portions of this fiber build. CS TECH proposes to pull fiber thru approximately 58,928' of CITY owned conduit. In summary this includes portions of: a) 9th St. and Locust St. CS TECH vault to W. 5th St. and Hill St. by way of 10th and Bluff Street (3,122'), b) W. 5th St. and Hill St. to Bryant St. and HWY 20 (2,139, c) HWY 20 and Bryant St. west to HWY 20 and NW Arterial (17,057, d) Hwy 20 north on NW Arterial to Pennsylvania then west on Middle Rd to Radford Rd. (7,156, e) NW Arterial and Chavenelle Rd. west to Public Safety Way then south on Seippel Rd. 12,376, f) Hwy 20 north on Wacker Dr. to JFK Rd then north to Asbury Rd. (5,896'), -1- g) W 9th St and University Ave. west to University Ave. and Asbury Rd. then to Asbury Rd. and St. Ambrose St. (8,875'), h) University Ave. and Asbury Rd south to University Ave. and Pennsylvania Ave. to Pennsylvania Ave and Mamora Ave (2,307'). Scope of shared service to be provided by CSTECH to CITY: CS TECH will construct approximately 23,673' of new conduit for CS TECH's use in completing the proposed 15.7 miles of new fiber plant. The five new CS TECH conduit paths will complete four previously identified high priority CITY routes, passing two targeted CITY facilities. The fifth lower priority CITY route passes two Dubuque Community School District locations. These CITY sites include: Dubuque Metropolitan Waste Agency Landfill, Emergency Operations Center, Carver Elementary and the Eleanor Roosevelt Middle School. All four sites are on the west edge of town. Additionally, CS TECH use of CITY conduit provides fiber access to one Fire Station on JFK Rd. and one Dubuque Community School District School, Irving Elementary. CS TECH proposes to allow CITY only required path on portions of this conduit build. In summary this includes portions of: a) NW Arterial and Chavenelle Rd. (5,524'), b) Chavenelle Rd. to Public Safety Way and south on Seippel Rd. (7,553'), c) Wacker Dr. to Pennsylvania Ave. (1,396), d) Radford Rd. north to Carver Elementary and Eleanor Roosevelt Middle School (1,800), e) Seippel Rd. south onto Hwy 20 to Landfill (7,400'). In the circumstance where conduit becomes limited or constrained on the routes referenced herein and CITY requires additional capacity CITY may request approval from CS TECH to over- ride fiber in occupied conduit, which approval shall not be unreasonably withheld. The parties agree that the portion of conduit build identified as CS TECH (e) remains subject to state and local transportation decisions that have not yet been finalized and that this portion of the conduit build may be delayed or alternative actions of equal value substituted, by mutual agreement of the parties in writing. Once complete, CS TECH will also provide 12 single -mode fibers to the CITY on all routes within this Project Statement. Term of Project: 25 years, which may be extended by the mutual agreement of the parties in writing. -2- Charges and payment terms: CS TECH appreciates this opportunity to invest with the CITY leveraging the CITY's current conduit paths. In exchange CS TECH has outlined above what it sees as the many benefits to the CITY. The future economic benefits from the 2016 placement of fiber to underserved areas will help the City of Dubuque attract future growth. This proposal also connects critical CITY locations on the west edge of town at little or no cost to the CITY. This proposed fiber build comes at an estimated cost that exceeds $475,000 to CS TECH. All estimated costs are external to CS TECH and will be spent in the City of Dubuque during 2016. CS TECH's internal labor, engineering and capital costs are excluded. The bulk of external costs, over $315,000, are being spent to build to sites previously identified by the CITY as priority routes and sites. CS TECH also proposes to provide 12 managed fibers to the CITY on all routes within this Project Statement once the CS TECH build is completed, such fibers to terminate or splice to City Fiber as instructed by CITY. The expectation is that CS TECH and the CITY will see this proposal as mutually beneficial and of similar value to each party. CITY will give to CS TECH approximately: > $177,000 in one time use of conduit consideration. > Annual revenue credit equivalent of $9,600 for one rack at the CITY 3rd St. Water Tower facility. CS TECH will give to CITY approximately: > $166,000 in one time use of conduit consideration. > Annual revenue credit equivalent of $12,900 for 4.5 miles of newly installed managed fiber. > In addition, CS TECH will grant a revenue credit equivalent of $32,100 annually for 11.2 miles of managed fiber within CITY owned conduit routes. Project accepted: By: Michael Van Milligan, Dubuque City Manager By: Donn Wilmott, CEO of CS Technologies, Inc. Date -3-