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1h Right-of-Way Permit/Metricom U RECEi'i£D rEF ;~ 3 ?~oo CITY OF CH^NH^~~b~ Writers Direct Phone: 612-403-7832 February 17, 2000 Mr. Scott Botcher City of Chanhassen City Manager 690 City Center Drive Chanhasseay MN 55317-0147 re: Completion of Metricom's ROW Agreement Dear Scott: Thanks.fœ:yow:.r.l1 and.;nt("rpst on the pbone Mon~.conceming final steps to bring Metricom's innovative new "Ricochet®" wireless internet anUata service to residents and busines.ses in Chanhassen . \ I h.a¥e..n.rhpil one.!'finalJ:erision" and thœe.."execntohlp. originals" ofMetrlcom's "Right-of- Way Permit and Facility Use Agreement" (ROW) for signature by you and Chanhassen's Mayor. As wedisclIssed, .the."~ ofthe-ROW was-done--in concurrence with Mr. Tom Grundhoefer, General Counsel for the League of Minnesota Cities (LMC), and with Mr. Jim StrC'mmPn,.ttn17"p.yforthe ~n¡'...rhan.Ratp Anthority (SRA). All changes were finalized in late December, 1999. If you h'l"C been able to read th", mpmns 'which Jim Stromm("ft has written about his work on this "model" ROW, you most likely know that we were conscientious in our work with both the !MC.nil gR A,-and.revi-iI thp. ilnrnmPnt to their saÛsf1l<'finn. We believe this ROW goes beyond stlrtutory requirements for compensating cities for MetñCOIli's very IDînima1 impact on public rights-ot:way. Ow:.radios reql,ire nn iligging in nr .ilj.rpnt tn str"'*., nn nnilP.Tground conduits, no street cuts, no significant inconvenience to traffic (since we estimate only 15.minutes to install each pole-top de¥ice),. aJld only ~out 5...to.1"sJwe,..bwC'size-pole-~devices per square mile mounted on existing pole structures. This is tmly minimal impact on your. right-of-way, but it brings a sigJ1ifir.nt j,p.np.fit ofnew. M1T1pP.tÏtnrp. <P.1'\!Ír.es to your citizens! To date, 15 local Minnesota cities have approved and signed this same ROW document. Your DPigJ>hnr rC'h..h , was thp fir<t to..sign.and..wanato 1:>e first city to have our competitive new service up and operating. Page-l of 2 , We also think this ROW is the "model" of a .fàir way to document methods for using public rightsro£.way.to.bring innO¥ativenew.smrices to the public, which in turn can attract people and business to your community. We want to 1:>e.fàir to all cities, and since fairness is best ensured with. a. <t.nil'lrd document, we've 1:>een relnrf'l"t to change this standard ROW. On our last call, you suggested that you would review this issue with your staff... please also r-eview·tlte iDformation I gavethem-at-OIIf-first meeting on October 20th. We would like this issue put on your next available City Councitagenda (Consent Agenda if possible since LMC and SRA, are already comroi1a6Ie with the-ROW document). I will plan to attend that meeting if pos~ible, to '';s",-iay questions ~ CoÏÜ1ëil members may have. Please use the number atthe top of the page to confirm council meeting date ànd time. After the ROW. i. dgJ'eiI b-y.r.h.nh....... .,.hIlÎ11ask.Metricon1-to execute them, and retum. one original for city files. As soon as the ROW is executed, we can.complete final planning for the actuaLp.laç"ment of pole-top radios. '\ ~ ~g.in for .you.mterp.<t .nil ..dstanrp. in bringingthis innovative new Ricochet® service to your constituents. Sincerely, ~~ Max W. Thompson MP.tTiçom,Inc......MN ~l Market Manager , Page 2 of2 Reference Draft Highlight of changes made by Metricom as requested by LMC and SRA [NAME OF MUNICIPA LITYj I Right-of-Way Permit and Facility Use Agreement THIS RIGHT-OF-WAY USE AGREEMENT (this "Use Agreement") is dated as of . [Year of Agreement Date] (the "Effective Date"), and entered into by and between the CITY OF [NAME OF MUNlCll' ALITY], a Minnesota local government 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 Communications Commission, a mobile digital data communications radio network known as Ricochet®, utilizing Radios (as defined in § 1.10 below) and related equipment certified by the Federal Communications Commission. B. 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 § 1.9 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 sufficiency of which are hereby acknowledged, the parties agree to the following covenants, terms, and conditions: 1 DEFINmONs. The following definitions shall apply generally to the provisions of this Use A-greement: 1.1 Adjusted Gross Revenues. "Adjusted Gross Revenues" means the gross dollar amount received by Metricom for its Services (as defined in § 1.11 below) provided to subscribers with billing addresses in the City, excluding (i) the RigHt ef Way MaftagemeRt ReimbuFsemeRt, if aft)', payable pUFSuaRt te § 4.1 ct seq. Belew aRà any utility users' tax, Right-of-Way Permit and Facility UseAgreemenl G"ty of [Name of MunidpalityJ:: Meln'com, Inc. Page 10f 17 · . telecammum£atiaRs communications tax, or similar tax or fee; (ü) local, state, or federal taxes that have been billed to the subscribers and separately stated on subscribers' bills; and (iü) revenue uncollectible from subscribers (i.e., bad debts) with billing addresses in the City that was previously included in Adjusted Gross Revenues. 1.2 Oty. "City" means the City of [Name of Municipality]. 1.3 Fee. "Fee" means any assessment, license, charge, fee, imposition, tax, or levy of general application to entities doing business in the City lawfully imposed by any governmental body (but excluding any utility users' tax, franchise fees, teI££ammumcatiaRs communications tax, or similar tax or fee). 1.4 lnstallalion Date. "Installation Date" shall mean the date that the first Radio is installed by Metricom pursuant to this Use Agreement. 1.5 LaWs. "Laws" means any and all statutes, constitutions, ordinances, resolutions, regulations, judicial decisions, rules, tariffs, administrative orders, certificates, orders, or other requirements of the City or other governmental agency having joint or several jurisdiction over the parties to this Use Agreement. 1.6 Metricom. "Metricom" means Metricom, Inc., a corporation duly organized and existing under the laws of the State of Delaware, and its lawful successors, assigns, and transferees. 1.7 MPUC" MPUC" means the Minnesota Public Utility Commission. 1.8 Municipal Fad/jlies. "Municipal Facilities" means City-owned street light poles, lighting fixtures, electroliers, or other City-owned structures locat@d within the Public Right of Way and may refer to such facilities in the singular or plural, as appropriate to the context in which used. . 1.9 Publk RÏjJht of Way. "Public Right of Way" means the space in, upon. above, along, across, and over the public streets, roads, highways, lanes, cartways, courts, ways, alleys, boulevards, sidewalks, bicycle lanes, and places, including all public utility easements and public service easements 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 rights of way or any property owned by any person or entity other than the City, except Righl-of..Way Permit and FaC11ity Use Agreement Ci~v of {Name of Municipality) :: Metricorn, Inc. Page 20117 as provided by applicable Laws or pursuant to an agreement between the City and any such person or entity. H the City adjusts its boundaries pursuant to Minn. Stat., 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 after the adjustment. 1.10 Radio. "Radio" means the radio equipment, whether referred to singly or collectively, to be installed and operated by Metricom hereunder. 1.11 Services. "Services" means the mobile digital communications services provided through Ricochet® by Metricom, which services consist principally of wireless Internet, e-mail and local area network access and m.!Iy.J.!!f.h~.çk.~-ªM!~!!!i.§'!.º.!LQ.L!igJ!.-'lg..-ª!!9..:y'~,g~-º-J.m..~Z~~LE!ºy':!.g~4J..hº.~.~Y.~!'L that "Services" shall not be construed, interpreted or applied to authorize ~Üh~!'....!'~-ªLJ.Ü!!~.J~!~.!?..m.ill:\!:mf-ª.t\º.!!!i....~~!y'!Ç~.~.....c!!!!;:.!.~.g!D-g....t~J~l?hº!!~...ª!!g. voice) or video or cable television communications services except as may be considered standard Internet content. 2 TERM. This Use Agreement shall be effective as of the Effective Date and shall extend for a term of nine (9) years commencing on the Installation Date, unless it is earlier terminated by either party in accordance with the provisions 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 MetriE:ÐRl Ratifies the City either party notifies the other of its intention not to renew not less than thirty (3g) one hundred eighty (ISO) calendar days prior to commencement of the relevant renewal term. 3 ScOPE OF USE AGREEMENT. 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 right of the City under applicable Laws to use any and all parts of the Public Right of Way exclusively or concurrently with any other person or entity and shall be further subject to all deeds, easements, dedications, conditions, covenants, restrictions, encumbrances, and claims of title of record which may affect the Public Right of Way. Nothing in this Use Agreement shall be deemed to grant, convey, create, or vest in Metricom a real property interest in land, including any fee, leasehold interest, or easement. Any work performed pursuant to the rights granted under this Use Agreement shall be subject to the reasonable prior review and approval of the City. Righl-ol- Way Permit and Facility Use Agreement Diy of [Name of Municipality}:: Metricom, Inc. Page 30117 . . 3.1 Attachment to Municipal Facilities. The City hereby authorizes and permits Metricom to enter upon the Public Right of Way and to locate, place, attach, install, operate, maintain, remove, reattach, reinstall, relocate, and replace Radios in or on Municipal Facilities for the purposes of operating Ricochet® and providing Services. In addition, subject to the provisions of § 4.3 below, Metricom shall 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 obtaining the permission of the owner(s) of the affected property, the City hereby authorizes and permits Metricom to enter upon the Public Right of Way and to attach, install, operate, maintain, remove, reattach, reinstall, relocate, and replace such number of 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 permitted by the public utility company or property owner, as the case may be for the purposes of operating Ricochet® and providinlt Services. Upon request, Metricom shall furnish to the City documentation of such permission from the individual utility or property owner responsible. City agrees to cooperate with Metricom, at no cost or expense to City, in obtaining where necessary the consents of third-party owners of property located in the Public Right of Way. 3.3 No Interference. Metricom in the performance and exercise of its rights and obligations under this Use Agreement shall not interfere in any manner with the existence and operation of any and all public and private rights of way, sanitary sewers, water mains, storm drains, gas mains, poles, ærial and underground electrical and telephone wires, electroliers, cable television, and other--telec-ßmmuflic-ations information or communications, utility, or municipal property, without the express written approval of the owner or owners of the affected property or properties, except as permitted by applicable Laws or this Use Agreement GI¥«g~ees40 use reasonable~ff{ r-ls to:require the iRdliSion~f the same or a similar prohibition on interference as that stated above in all agreements and franchises City may enter into after the Effective Date with other . teleEelftlftunicatioRS information or communications providers and carriers. Right-of-Way Permit and Facility Use Agreement Oty of {Name 01 Municipality} :: Metrirom, Inc. Page 40117 3.3.1 Interference Resolution. Any actual or anticipated radio interference caused by either the presence of the Radios or the presence of anv such other communications eQuipment or devices in the Public Right of Way shall be resolved by Metricom and any such other providers without cost to City on the basis of the applicable rules, regulations, practices, and procedures of the FCC. City agrees to assist Metricom in the resolution of any such interference dispute at Metricom's sole expense. 3.4 Compliance with Laws. Metricom shall comply with all applicable Laws in the exercise and performance of its rights and obligations under this Use Agreement 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 initial installation of the Radios. City shall promptly respond to Metricom's filings and shall otherwise cooperate with Metricom in facilitating the deployment of Ricochet® in the Public Right of Way in a reasonable and timely manner. 3.5 Location and Installation of Radios. The proposed locations of Metricom's planned initial installation of Radios shall be 3reviàeà te tfte City in e-ensultatiøn--determined ~.!!.!?i.~.L.tp.__.fu~_...!~.!t~º!!~J?l~.._p..r.!º!:....!.~.Y.i.~~.._ª.!!!;I approval of the City, promptly after Metricom's review of available street light maps and prior to deployment of the Radios. Upon the completion of installation, Metricom promptly shall furnish to the City a pole list showing the exact location of the Radios in the Public Right of Way. 4 COMPENSATION; UTILITY CHARGFS. Metricom shall be solely responsible for the payment of all lawful Fees in connection with Metricom's performance under tills Use Agreement, in accordance with the terms set forth below. 4.1 Right-of-Way Management Reimbursement In order to reimburse City for any right-of-way management costs it may incur during the term of tills Use Agreement following the initial deployment of the Radios in connection with Metricom's entry upon and deployment within the Public Right {)f Way, Metricom shall pay 10 'the City, on .m annual basis, an .. amount equal to one percent (1 %) of Adjusted Gross Revenues (the "Right- of-Way Management Reimbursement"), willch amount may be collected from subscribers of the Services with billing addresses in the City and remitted to City as provided herein. The parties agree that such Right-of-Way Management ReImbursement represents a fall' estimate of the Rjgh/~f-Wa y Permit and Facility Use Agreement City 01 [Name of Municipality}:: Metn"com¿ Inc. Page 50! 17 costs of continuing management of the Public Right of Way utilized by Metricom and that such Right-of-Way Management Reimbursement is not a franchise fee or payment for use of the Public Right of Way. The Right-of-Way Management Reimbursement shall be payable for the period commencing upon the date that Services are offered to commercially paying subscribers within the City using Radios installed pursuant to this Use Agreement and ending on the date of termination of this Use Agreement, and shall be due on or before the 45th day after the end of each calendar 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 the end of the last calendar year for which compensation has been paid. Metricom shall furnish to the City with each payment of compensation required by this section a statement, executed by an authorized officer of Metricom or his or her designee, showing the amount of Adjusted Gross Revenues for the period covered by the payment If Metricom 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 next 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 larger amount was actually due or from collecting any balance due to the City. City may, at any time, at City's §.º!g...9..E!!.Q.!!t_..~p'.Q!}...m.!l~.ty...í29J..gªy..~.JY.º.~!l..!)'.Q.!tç~.._~9..I!-j!g...Mg!rjǺ!~L.t.º discontinue the Ril!:ht-of-Wav Manal!:ement Reimbursement compensation. Upon receivinl!: such notice Metricom shall, no later than ninety . (90) . days after receivins such notice, cease makinl!: all compensation payments that would have been payable after such ninety (90) day notice period. If City requires such a discontinuation of Ril!:ht-of- Way Manal!:ement Reimbursement compensation, the City may then J:hac~.~IHU1 .allRualbasis, its ~u:tuaLBighJ:.of-W4l¥ Mana.ttem.ent costs (pursuant to Minnesota Statutes Sec. 237.162, Subd. 9 and Sec. 237.163, ~!!.1?..4:...?-..J!?)),,_.!h!rt...l!:!.~.!!1.f.!!:~.. a(!er_th~.!!~j!:.'!ti9J!..Qf.Jh!.u!!!}.~.ty.J9..9)'A!!Y. period described above. Metricom shall only be liable for such actual ª!ID!!ªL~jgh!~.Qf=WJ'-Y._m.!!.!lé!g~1!\g"IJ..Lçº.~~..!Q...fug...!!~Jg!!L~!1.fÞ....f9_t~._~~.Çggg the annual retail value of the service subscriptions for which the City is eligible under Section 4.5 of this Agreement. Right-of-Way Permit and Fadlity Use Agreement O"ty ol[Nameof Munidpality}:: Metricom, Inc. Page 60f 17 4.1.1 Reduction of Right-of-Way Management Reimbursement by Amount of Utility Users or TelecemmuflÌE:aöeftS Communications Tax. Notwithstanding anything to the contrary in this Use Agreement, if the Services are subject· to a utility users tax, teleEemmuRÍcatieRs communications tax, or other similar tax or fee which accrues to the City by operation of the City's Municipal Code or other applicable law, then the amount of the Right-of-Way Management Reimbursement shall be reduced by the amount of the applicable utility users tax, telecemællRÏE:atieRS communications tax, or such other similar tax or fee. 4.1.2 Accounting Matters. Metricom shall keep accurate books of account at its principal office in Los Gatos or such other location of its choosing for the purpose of determining the amounts due to the City under § 4.1 above. The City may inspect Metricom's books of account relative to the City at any time during regular business hours on thirty (30) days' prior written notice and may audit the books from time to time at the City's sole expense, but in each case only to the extent necessary to confirm the accuracy of payments due under § 4.1 above. Alternatively, Metricom will make available for inspection by the City at Metricom's office located closest to the City, upon thirty (30) days 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 Agr.!?!?m.~!1!:. The City agrees to hold in confidence any non-public information it learns from Metricom to the fullest extent permitted by Law. 4.2 Annual Fee. As compensation for the use of Municipal Facilities, Metricom shall pay to the City an annual fee (the" Annual Fee") in the amount of Sixty Dollars ($60.00) for the use of each Municipal Facility, if any, upon which a Radio has been installed pursuant to this Use Agi'.eemenl WhePe light poles or ether facilities to be used -by Metric-om within the Public 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 of the term shall be an amount equal to the number of Radios installed on Municipal Facilities during 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) Right-of-Way Permit and Faâlity Use Agreement Dty of [Name of Municipality]:: Metricom, Inc. Page t0f 17 days after each anniversary of the Installation Date. City represents and covenants that City owns all Municipal Facilities for the use of which it is collecting from Metricom the Annual Fee pursuant to this § 4.2. 4.2.1 CPI Adjustment Effective commencing on the fifth (5th) anniversary of the Installation Date and continuing on each fifth (5th) anniversary thereafter during the term, the Annual Fee with respect to the ensuing five-year period shall be increased 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, 1982-1984=100) which occurred during the previous five-year period for the Midwest Urban Rel!:ion Consolidated Metropolitan Statistical Area. 4.3 Elecbicity Charges. Metricom shall be solely responsible for the payment of all electrical utility charges to the applicable utility company based upon the Radios' usage of electricity and applicable tariffs. 4.4 Reirnbursement of City's Project Review Expenses. Metricom shall reimburse the City at City's standard rates for reasonable attorney's fees and other project review expenses relating to the preparation and review of this Use Agreement, promptly upon receipt of itemized bills, paid invoices, and other such documentation as Metricom shall reasonably require, and in a total amount not to exceed One Thousand Dollars ($1,000). The reimbursement provided for in this § 4.4 shall not replace or excuse Metricom from the payment of any applicable permit fee for work undertaken pursuant to the initial installation of the Radios. 4.5 Municipal Subscriber Program. In erder te eRcÐllrage the \ise ef Rieochet@...-throagheut····fue···City...·and...-te····fadlitate---€reative·...appli€atieRs theref-ere, City shall have the right throughout the term of this Use Agreement to receive up to the maximum number specified below (based upon the City's population) of free Ricochel® basic service subscriptions. The numœr of free subscriptions wlúch the City 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; (b) for municipalities with a population of between 100,000 and 249,000, up to a maximum of fifteen (15) free subscriptions; (c) for Righf-of-Wa y Permit and Facility Use Agreement City of IName of Municipality):: Metricom, Inc. Page 80117 municipalities with a population of between 250,000 and 500,000, up to a maximum of twenty (20) free subscriptions; and (d) for municipalities of over 500,000, up to a maximum of twenty-five (25) free subscriptions. City shall designate one person who shall be responsible for ordering and receiving any subscriptions. To take advantage of this program, the designated individual should contact Metricom's Network Real Estate Deparbnent at the address stated in § 8 below City's right to use the subscriptions shall commence at the time that Ricochetq ) service is commercially available in the City and shall extend until the expiration of the term of this Use Agreement or through the length of time that Radios are deployed in the Municipal Right of Way, wrochever is longer. City's use of the subscriptions shall be subject to the standard Ricochel® terms and conditions of use. City understands and agrees. that modems and equipment required to utilize the subscriptions and any additional service subscriptions or service options the City may desire may be obtained from an authorized retailer at market rates current from time to time. City shall use all subscriptions provided pursuant to 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 person, excepting a local public entity that provides public service within the corporate boundaries of the City (e.g., municipal schools, public safety, or fire deparbnents, 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 òr prior to its cancellation or termination, as the case may be. 4.6 Most-Favored Municipality Gause. Should Metricom after the parties' execution and delivery of this Use Agreement enter into a right-of-way permit and facility use agreement with another municipality of the same size or smaller than the City as compared with cities in the Minnesota counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Wasrongton,iR the MiflReapelis Sl Paul MetrepelitaR Statistieal Area which agreement contains either (a) a rogher RiJ!;ht-of Way Manal1:ement Reimbursement as described in § 4.1 above or (a!1) a higher Annual Fee as described in § 4.2 above or ~) a rogher amount of Reimbursement of City's Project Review Expenses as described in § 4.4 above, City shall have the right to request-·require that Metricom modify this Use Agreement to Right-c¡" Way Permit and Facility Use Agreement Oty 0/ [Name of Municipality}:: Metn"com, Inc. Page 90117 incorporate the same or substantially similar superior benefits and such other terms. 5 RELocATION AND DISPLACEMENT OF RADIOS. Metricom understands and acknowledges that City may require Metricom to relocate one or more of its Radios, and Metricom shall at City's direction relocate such Radios at Metricom's sole cost and expense, whenever City reasonably determines that the relocation is needed for any of the following purposes: (a) if required for the construction, completion, repair, relocation, or maintenance of a City project; (b) because the Radio is interfering with or adversely affecting proper operation of City-owned light poles, traffic signals, or other Municipal Facilities; or (c) to protect or preserve the public health or safety. In any such case, City shall use its··bes-t··r~~~g!!ª!?k..efforts to afford Metricom a reasonably equivalent alternate location with no duty to incur any expenses or cost to City. If Metricom shall fail to relocate any Radios as requested by the City within a reasonable tiine under the circumstances in accordance with the foregoing provision, City shall be entitled to relocate the Radios at Metricom's sole cost and expense, without further notice to Metricom. To the extent the City has actual knowledge thereof, the City will attempt 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, Metricom shall so advise City. City will use reasonable its best efforts to accommodate Metricom by making another reasonably equivalent Municipal Facility available for use in accordance with and subject to the terms and conditions of this Use Agreement. 5.2 Damage to Public Right of Way. Whenever the removal or relocation of Radios is required or permitted under this Use Agreement, and such removal or relocation shall cause the Public Right of Way to be damaged, Metricom, at its sole cost and expense, shall promptly repair and return the Public Right of Way in which the Radios are located to a safe and satisfactory condition in accordance with applicable Laws, normal wear and tear excepted. If Metricom does not repair the site as just described, then the City shall have the option, upon fifteen (15) 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 Right-of-Way Permit and FadJity Use Agreement Oly of [Name of MunicipalityJ:: Metricom, Inc. Page lOof 17 City's standard rates. Upon the receipt of a demand for payment by the City, Metricom shall promptly reimburse the City for such costs. 6 INDEMNIFICATION AND WAIVER. Metricom agrees to indemnify, defend, protect, and hold harmless the City, its council members, officers, and employees from and against any and all claims, demands, losses, damages, liabilities, fines, charges, 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 undertaken pursuant to this Use Agreement, except to the extent arising from or caused by the negligence or willful misconduct of the City, its council members, officers, employees, agents, or contractors. The foregoing notwithstandin~ 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 or its 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 properlv or adequatelv inspect or enforce compliance with the terms, conditions or purpose of any permit 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 occurrence which is beyond the reasonable control of the City or on account of Citv's exercise of its regulatory or police powers. , , 6.2 Limitation of City's liability. The City shall be liable only for the cost of repair to damaged Radios arising from the negligence or willful misconduct of City, its employees, agents, or contractors. 7 INsURANCE. Memcom -shall obtain and maintain at;ùl-times during the term of this Use Agreement Commercial General Liability insurance and Commercial Automobile Liability insurance protecting Metricom in an amount not less than One Million Dollars ($1,000,000) per occurrence (combined single limit), including bodily injury and property damage, and in an amount not less than One Million Dollars ($1,000,000) annual aggregate for each personal injury liability and products-completed operations. Right-of. Way Permit and Facility Use Agreement O·~I' of {Name of Municipalityj:: Metn"com, Inc. Page 11 of 17 · , The Commercial General Liability insurance policy shall name the City, its council members, 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. Oaims-made policies are not acceptable. Such 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. Metricom shall be responsible for notifying the City of such change or cancellation. Prior to any five(5)-year renewal term, pursuant to Section f.J?L!.œ~..y':~.~__~~m_~.t...fu!LÇ!!Y.m.~.1'_¡:gg!!g§!..!!!!!!Jh~p-ª!!t~~..§Þ_'tI!..þ-!!r.gª-ÜL!!l_g,90d 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, Metricom shall file with the City the required original certificate(s) of insurance with endorsements, which shall state the following: (a) the policy number; name of insurance company; name and address of the agent or authorized representative; name and address of insured; project name; policy expiration date; and specific coverage amounts; (b) 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 any self-insured 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 contribute with this insurance; and (d) that Metricom's Commercial General Liability insurance policy waives any right 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 § 8 below. Right.of-Way Permit and Facility Use Agreement O'ty of [Name of Municipality}:: Metrirom, Inc. Page 120117 H7.2 Workers' Compensation Insurance. Metricom shall obtain and maintain at all times during the term of this Use Agreement statutory workers' compensation and employers liability insurance in an amount not less than One Million Dollars ($1,000,000) and shall furnish the City with a certificate showing proof of such coverage. 7.3 Insurer Criteria. Any insurance provider of Metricom shall be admitted and authorized to do business in the State of Minnesota and shall carry a minimum rating assigned by A.M Best & Company's Key Raüng Guide of "A" Overall and a Financial Size Category of "X" (ie., a size of $500,000,000 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 Interest Any deductibles or self-insured retentions must be stated on the certificate(s) of insurance, which shall be sent to and approved by the City. "Severability of interest" or "separation of insureds" clauses shall be made a part of the Commercial General Liability and Commercial Automobile Liability policies. 8 NOTICES. All notices which shall or may be given pursuant to this Use Agreement shall be in writing and delivered personally or transmitted (a) through the United States mail, by registered or certified mail, postage prepaid; (b) by means of prepaid overnight delivery service; or (c) by facsimile or email transmission, 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: if to the City: CITY OF [NAME OF MUNICIPALITY] Attn: [NAME OF CONTACT] [ADDRESS] [Name of Municipality], MN [ZIP] if to Metricom: MEIRICOM, INc. Attn: Network Real Estate 980 University Avenue Los Gatos, CA 95032 RÎght-of-Way Permit and Facility Use Agreement O'~y of [Name of Municipality]:: Metrirom~ Inc. Page 130117 ht8.1 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, email, or overnight delivery. Either party may from time to time designate any other address for this purpose by written notice to the other party delivered in the manner set forth above. 9 TERMINATION. This Use Agreement may be terminated by either party upon forty five (45) days' prior written 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 forty-five (45) days of receipt of written notice of default (or, if such default is not curable within forty-five (45) days, if the defaulting party fails 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 term. 10 AssIGNMENT. This Use Agreement shall not be assigned by Metricom without the express written consent of the City, which consent shall not be unreasonably withheld, conditioned, or delayed. Notwithstanding the foregoing, the transfer of the rights and obligations of Metricom hereunder to a parent, subsidiary, 5\u::eeSS6rs, or financially viable affiliate of Metricom or to any successor-in-interest or entity acquiring all or substantially all of Metricom's outstanding voting stock or assets shall not be deemed an assignment for the purposes of this Use Agreement 11 MISCELLANEOUS PROVISIONS. The provisions which follow shall apply generally to the obligations of the parties under this Use Agreement 11.1 Nonexclusive Use. Metricom understands that this Use Agreement does not provide Metricom with exclusive use of the Public Right of Way or any Municipal Facility and that City shall have the right to permit other providers of communications services to install equipment or devices in the Public Right of Way and on Municipal Facilities. City agrees promptly 10 no1:ífy Metricom of the receipt uf 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 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. Righl-<Jf-Wa y Permit and Facility Use Agreement at)' of [Name of Municipality}:: Metricom, Inc. Page 14 of 17 11.2 Waiver of Breach. The waiver by either party of 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. 11.3 Severability of Provisions. If anyone or more of the provisions of this Use Agreement shall be held by 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 Use Agreement and shall not affect the legality, validity, or constitutionality of the remaining portions of this Use Agreement. Notwithstanding the f.Qr..~gQ!!}.,g/.JÞ.~.J?ª,.r-º~.~._!!&r.~.Jh-ª.U.f..-'.Lf.º.!!!:LQL~.!!.!!).jI!!~!:!-ª.t!Y.~...ªg~.nç'y'...Q.f competent jurisdiction should declare a provision(s) of Section 4 of this JJ.~.~....bgr.~m.~!}tj!ly'-ªJj~t....t.hg!l...!h.~.....p.-ªr!!g~.._.~hªn.....~.ª'.ç.h....Þ.~....Qþ.Jjgª~g...JQ negotiate in good faith to amend Section 4 of this Use Agreement and if, after one hundred and eighty (180) days from the commencement of negotiations or such extension thereof that may be agreed by the parties, the parties are unable to reach agreement on amendments hereto, then this Use Agreement may be terminated by either party Each party hereby dedares..-that...it..-weukl....·have··-entered·---inte--·this---Use-·A-greement--and--·eaeh previsieR hereaf regardless af whctfter aft)' aRe ar mare pravisians may be dedared--illegal,invalid,·or-uocof\Stitutienal. 11.4 Contacting Metricom. Metricom shall be available to the staff employees of any City department 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, installation, operation, maintenance, or removal of the Radios. The City may contact by telephone the network control center operator at telephone number (800) 873-3468 regarding such problems or complaints. 11.5 Governing Law; Jurisdiction. This Use Agreement shall be governed and construed by and in accordance with the laws of the State of [State of Municipal Entity], without reference to its conflicts of law principles. If suit is brought by a party to this Use Agreement, the parties agree that trial of such action shall be vested exclusively in the state courts of Minnesota, County of [Name of County], or in the United States District Court for the District of Minnesota. Rjght-o~Wa y Permit and Facility Use Agreement Dty 0/ [Name of Municipality]:: Metn"com, Inc. Page 150117 11.6 Attorneys' Fees. Should any dispute arising out of this Use Agreement lead to litigation, the prevailing party shall be entitled to recover its costs of suit up to an amount of Five Thousand Dollars ($5,000.00), including (without limitation) reasonable attorneys' fees. 11.7 Consent Criteria. In 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. 11.8 Representations and Warranties. Each of the parties to this Agreement represents and warrants that it has the full right, power, legal capacity, and authority to enter into and perform the parties' respective obligations hereunder and that such obligations shall be binding upon such party without the requirement of the approval or consent of any other person or entity in connection herewith, except as provided in § 3.2 above. 11. 9 Amendment of Use Agreement. This Use Agreement may not be amended except pursuant to a written instrument signed by both parties. 11.10 Entire Agreement. This Use Agreement contains the entire understanding between the 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. Rjgh/~f.Way Permit and Fadlity Use Agreement O'ty 0/ [Name 01 MUIU'dpality}:: Metricom, Inc. Page 16 of 17 In witness whereof, and in order to bind themselves legally to the terms and conditions of this Use Agreement, the duly authorized representatives of the parties have executed this Use Agreement as of the Effective Date. City.; CITY OF [NAME OF MUNICIPALITY], a Minnesota municipal corporation By: [name typedJ Its: Date: . [Year of Agreement Date] By: {name lV1JedJ Its: Date: , [Year of Agreement Datel Metricom: METRICOM, INe., a Delaware corporation By: [name typedJ Its: DatEi: . [Year of Agreement Date] Right-of-Way Permit and Facility Use Agreement Gty of [Name 0/ MumcipalityJ:: Metrirom, Inc. Page 170117 CHANHASSEN Right-of-Way Permit and Facility Use Agreement T'- HlS-RIGJIT..GF-WAYUSE AGREBMENT (this "Use Agreement") is dated as of (the "Effective Date"), and entered irl1D by and between the CITY OF CHANHASSEN ,a Minnesota local government unit (the "City"), and MFTRTrOM, INC.,..a n...IA",are corporation ("Metricom"). Recita1s A. Metricom owns, mairltairls, and operates, irI accordance with regulations promulgated by the Federal Communications Commission, a mobile digital data cOillillu"iuttiu"" radio network- known as Ricochet®, utilizing Radios (as defirled irI § 1.10 below) and related equipment certified by the Federal Communications Commission. B. For purpose of operating Ricochet®, Metricom wishes 1D locate, place, attach; insfaH-rúp""ale, and- .á,~,taj"Radios- irI the Public Right of Way (as defined irI § 1.9 below) on facilities owned by the City, as well as on facilities owned by third parties thereirl. Aq.:teement Now, tIïerefòre, for good and valuable consideration, the receipt and suffi€iency~ of which· are-hefeby a€knowledged; the padies agree 1D the followirlg covenants, terms, and conditions: 1 DEFINTI10NS. The followirlg definitions shall apply generally 1D the provisions of this Use Agreement 1.1 Adjusted Gross Reve",æs. "Adjusted Gross Revenues" means the gross dollarllmountreeeivedby Metricomfor its Services (as defined irI § 1.11 below) provided 1D subscribers with billing addresses irI the City, excludirlg (i) any utility users' fax, communications fax, or similar fax or fee; (ii) local, state, GI' federal--faxes- that have been billed 1D the subscribers and separately stated on subscribers' bills; and (ill) revenue uncollectible from subscribers (i.e., bad debts) with billing addresses irI the City that was. previously inrl11C1pd.in.AdjustedGross Revenues. Righi-of-Way Permit and Facility UseAgreemenf Oty ofChanhassen :: Metricom, lac. Page 10[16 1.2 City. "City" means the City of CHANHASSEN . 1.3 Fee. "Fee" means any assessment, license, charge, fee, imposition, tax, or levy of general application to entities doirlg business irI the City lawfully imposed bY-aRY governmental OOdy (but excludirlg any utility users' tax, franchise fees, communications tax, or similar tax or fee). 1.4 Installation DRte. "Installation Date" shall mean the date that the first Radio is installed by Metricom pursuant to this Use Agreement 1.5 ÙlWS. "Laws" means any and all statutes, constitutions, ordinances, resolutions, regulat:ìÐß6; judicial decisions, rules, tariffs, administrative orders, certificates, orders, or other requirements of the City or other governmental agency havirlg joirlt or several jurisdiction over the parties to this_Use. þ.gr_mPnt _ 1.6 Metria»u.. "MetRrom" IlWImS- Metricom, -Inc., a corporation duly organized and existing under the laws of the State of Delaware, and its lawful successors, assigns, and transferees. 1.7 MPUc." MPUC' means the Minnesota Public Utility Commission. 1.8 Mwticipal Faciliti£s. "Municipal Facilities" means City-owned street light poles, lighting fi>.-'lures, eledroliers,- or other City-owned structures located withirl the Public Right of Way and may refer to such facilities irI the sirlgular or plural, as appropriate to the context irI which used. 1.9 Public RigId of Way. "Public Right of Way" means the space irI, upon, abov-e, along,anoss, andgver the public streets, roads, highways, lanes, cartways, courts, ways,alIeys,-boulevards, sidewalks, bicycle lanes, and places, irlcludirlg all public utility easements and public service easements as. the same now or may hereafter exist,. that are under the jurisdiction of the City. This term shall not irlclude county, state, or federal rights of way or any property owned by any person or entity other than the City, except -as-provided by applicable Laws or pu,,,uantio an agreement between ihe City and any such person or entity. If the City adjusts its boundaries pursuant to M.itm. Stat, Chap. 414 through annexation, irlcorporation, combirlation, detachment, or other means, this Use Agreement shall be birldirlg on the entire area withirl tile City's boundaries after the adjusookeut - 1.10---- Rmfiu; "Radio"me-ans-lhe-radio eqtripment;whether referred to sirlgly or collectively, to be installed and operated by Metricom hereunder. Rigld-cif-Way Permit and FacUity Use Agreement City ofClumhassen :: Metricom, lxc. Page 20f 16 1.11 Serviœs. "Services" melmS the mobile digital communications services provided through Ricochet® by Metricom, which services consist principally of wireless Inæn1et. e-mail and local area network access and may include transmission of sound and video images; provided, however, tña.t "Services'- shall ï,ot be' construed, interpreted or applied to authorize either real time telecommunications services (including telephone and voice) or video or cable television communications services except as may be considered--smndard-futemet content Z- .. TËRM. This uSe Agreement shaIl be effective as of the Effective Date and shall extend for a term of nine (9) years commencing on the Installation Date, unless it is earlier terminated by either pari)" in accordance with the provisions herein. The term of this Use Agreement·shaltbe--renewedautomatica.lly 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 renew not less than one hundred eighty (180) calendardays priorto-CVllu..ucm..ement of the relevant renewal term. 3 SCOPEul'Th.f,AGIŒEMENr.- Any,md-aitrighwexpressly 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 right of the City under applicable Laws to use any-andaHpartsof the Pttblic Right of Way exclusively or concurrently with any other person or entity and shall be further subject to all deeds, easements, dedications, conditions, covenants, restrictions, encumbrances, and claims of title of record which may affect·ire Publi£ Right otWay. NoIhing in thi&Use Agreement shall be deemed to grant, convey, create, or vest in Metricom a real property interest in land, including any fee, leasehold interest, or easement Any work performed pursuant to the rights granæd under.. this- Use Agreement shall be subjed tuthe reasonable prior review and approval of the City. 3.1 Attachment to Municipal Facilities. The City hereby authorizes and permits Metricom to enter upon the Public Right of Way and to locate, place,. attach, install. operate,- m,,;nm;'l,,_ remove, reattach, reinstall, relocate, and replace Radios in or on Municipal Facilities for tl1e purposes of operating Rícoclièt® and providing Services. In addition, subject to the provisions.of§ 4.3 below, Metricomshall have the right to draw electricity for the operation of the Radios from the power source associated with each such attachment Ib Municipal Facilities. 3Z Attachment to Tliird-P-arfy P-roperty. Subject to obtaining the permission of the owner(s) of the affected properly, the City hereby authorizes and permits Metricom to enter upon the Public Right of Way and to attach, install; ope-rate; maintain; remove, reattach, reinslall, relocate, and replace Right-of-Way Permit and FacHity Use Agrument City ofChanhAssen :: Metrico... Inc. Page3ofI6. such number of Radios irI or on poles or other structures owned by public utility companies or other properly owners locatEd withirl the Public Right of Wa.y as_ IlUI¥. be permittEd by the public utility company or properly owner, as the case may . be for the purposes of operating Rícochet® and- provid"fug Services. Upon request, Metricom shall furnish to the City documentation of such permission from the irldividual utility or properly owner responsible. City agrees to cooperatE with Metricom, at no cost or expense to City, irI obtaining where necessary the consents of third-party owners of property located irI the Public Right of Way. 3.3 No InteIference. Metricom irI the pertormance and exercise of its rights and obligations under this Use Agreement shall not irltErtere irI any manner with the existence and operation of any and all public and privatE rights of way, sanitary sewers, watEr mairls, storm drains, gas mairls, poles, ænal and underground electrical and tElephone wires, electroliers, cable tElevision;· and-- other-ÌIÚonnation or communications, utility, or municipal property, without the express'written approval of the owner or owners of the affectEd property or properties, except as permitted by applicable Laws- or this· Use-Agreement City agrees to use reasonable efforts to require the irlclusion of the same or a similar prohibition on irltErterence as that statEd above irI all agreements and franchises City may enter into aiœ:!' the Effective DatE with other information or communications providers and carriers. 3.3.1 InteIfereftceRfiolufiort. Any actual or anticipatEd radio irlterterence caused by either the presence of the Radios or the presence of any such other communications equipment or devices irI the Public Right of Way shall be' resolved by Metricom and - any such other providers without cost to City on the basis of the applicable rules, regulations, practices, and procedures of the FCC. City agrees to assist Metricom irI the resolution many stl£h imenerefl£e dispute- at Metricom's sole expense. 3,4 C"....I'I:;,.....co: with-I;aws; Met..i...om-shaH comply with all applicable Laws irI the exercise and performance of its rights and obligations under this Use Agreement The Right-of-Way Management Reimbursement provided for in- §-4.1 below shall be irllieu of all other City fees, with the exception of any City permits required for the irlitial irlstallation of the Radios. City shall promptly respond to Metricom's filings and shall otherwise cooperaœ with Metricom in facilitating the deployment of Ricochet® irI the Public Right of Way irI a reasonable and timely manner. RigJd-of·Way Permit and Facility Use Agreement City ofCllanhassen :: Metrú::om, lnc. Page 40f 16 3.5 Location and Installation of Radios. The proposed locations of Metricom's planned initial installation o{ Radios shall be determined s11bjed to the reasonable prior review and approval o{ the City, promptly after Metricoms review o{available street light maps and prior to deployment of the Radios. Upon the completion o{ installation, Metricom promptly shallíumish to the City a pole list showirlg the exact location of the Radios irI the Public Right of Way. 4 COMPENSATION; U'I'IIJTY CHARGES. Metricom shall be solely responsible for the payment o{ all lawful Fees fu connection with Metricom's performance under this Use Agreement, irI accordance with the terms set forth below. 4.1 R1gJ>t-of-Wa.y ~anagP1"'P11t Reim.bursement. In order to reimburse City for any right-of-way management costs it may irlcur during the term of thiS USe Agreement (öl1öwfug the initial deployment o{ 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 amountequalm-onepercent-(l%) of-Adjusted Gross Revenues (the "Right- of-Way Management Reimbursement'), which amount may be collected from subscribers of the Services with billing addresses in the City and ,,,.......;tkJ. to City as provided- he,,,.iJ.~ The parties agree that such Right-of-Way Management Reimbursement represents a fair estimate of the costs of continuing management of the Public Right of Way utilized by Metrkomand that sum Right-ot:-Way Management Reimbursement is not a franchise fee or payment for use of the Public Right of Way. The Right-of-Way Management Reimbursement shall be payable for the period commencirlg upon- the date IhatServices are offered to commercially payirlg subscribers within the City using Radios installed pursuant to this Use Agreement and endìng on the date of termination of this Use Agreement, and shall be due onar before the 45th day after the end of each calendar year or fraction thereof. Within forty-five (45) days after the terminatiorí of this Use Agreement, compensation shall be païd {ör the period elapsirlg sirlce the -.=i -of 1helast calendar year for which ...'OíhpeUS8.tion i1as been paid. Metricom shall furnish to the City with each payment of compensation required by this æction a·sta1ement;:executed by an authorized officer of Metricom or his or her designee, showirlg the amount of Adjusted Gross Revenues for the period covered by the payment If Metricom discovers any error in the =t amount ofcump="",tion due, the City shall be paid withirl thirty (30) days of discovery of the eITOr or determination of the correct amount Any overpayment to the City through error or othelWise shall be refunded OF offset against the next payment due. Acceptance by the Right-of-Way Permit and Facility Use Agreement oty of ChanhasseJt :; Metricom, lac. Page5of16 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. acceptanœby the. City of any such payments preclude the City from later establishirtgthat a larger amount was actually due or from 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 compensation. Upon receivirtg such notice Metricom shall, no later than nirtety (90) days after receivirlg such notice, cease making all compensation payments that would have been payable after such ninety (90) daynotiœperiod; If City requires such a discontinuation of Right-of- Way Management Reimbursement compensation, the City may then charge, on an annual basis, its actual Right-of-Way Management costs (pursuant to Minnerota-Sftttutes SecH237.162, Subd. 9 and Sec. 237.163, Subd. 2 (b», that areirlcurred after the expiration of the ninety (90) day period described above. Metricom shall only be liable for such actual ann_l- Right-of-Way.management costs to-the extent such costs exceed the annual retail value of the service subscriptions for which the City is eligible under Section 4.5 of this Agreement 4.1.1 Reduction of Right-of-Way Management Reimbursement by Amount.- of. Utility Users. 01' Communications Tax. Notwithstandirlg anythirlg to the contrary irI this Use Agreement, if the Services are 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 law, then the amount of the Rïght~of-Way ManagementReimbursement 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 Matters. Metricom shall keep accurate books of account at its prirlcipal office irI Los Gatos or such other location of its choosing for -the purpose~f determiRirlg the.amounts due io the City under § 4.1 above. The City may inspect Metricom's books of account relativetotfre City at any time during regular busirless hours on thirty (30) days' prior written notice and may a.udit the books from time to time at the City's sole expense, but irI each case only to the extent neœssa:ry to confirm the accuracy of payments due under § 4.1 above. Alternatively, Metricom will make available for inspection by the City at Metricom's office located closest to tRe City, upon thirty (30) days prior written notice, the Right-of-Way Permit and Facility Use Agreement City ofChanhassen ;; Metricom, Inc. Page6of16 relevant portions of its books and records as reasonably necessary to confirm the accuracy of any payments due the City under this Use Agreement. The. City agrees to hold in confidence any non-public information it learns from Metricom to the fullest extent permitæd by taw. 4.2 Annual Fee. As compensation for the use of Municipal Facilities, Metricom shall pay .to the City an annual fee (the" Annual Fee") in the amount of Sixty Dollars ($60.00) for the use of each Municipal Facility, if any, upon which a Radio has been installed pursuant to this Use Agreement Where light poles or other facilities to be used by Metricom within the Public Right of Way are owned by a utility, such annual fee shalt be paid to the appropriate utility and not to the City. The aggregate Annual Fee with respect to each year of the term shall be an amount equal to the number of Radios installed on Municipal Facilities during the preceding-twelve- (12} wvutl." multiplied by the Annual Fee, prorated as appropriate, and shall be due and payable not later than forty-five (45) days after each anniversary of the Installation Date. City represents and covenants that City owns-all Munieil'al Fa€ili-äe& for lheuse of which it is collecting from Metricom the Annual Fee pursuant to this§ 4.2. 4.2.1 CPI Adjustment. Effective commencing on the fifth (5th) anniversary of the Installation Date and continuing on each fifth (SIh) anniveTSIU'Y thereafter during the term, the- 4nnual Fee with respect to the ensuing five-year period shall be 'increased by a percentage amount equal to the percentage increase, if any, in the Us., Der"rtmPfÚ. of. Labor, Bureau of. Labor 5taJ:jstics Consumer Price Index (All Items, All Consumers, 1982-1984=100) which occurred during tfie previous five-year period f~r the Midwest Urban Region Consolidated Metropolitan Statistical Area. 4.3 FI..rtTÍrity C'h:"~g"" Melricom shall be solely responsible. for the payment of all electrical utility charges to the applicable utility company based upon the Radios' usage of electricity and- applicable fu.riffs:- 4.4 Reimbursement of City's P"rojëct Rëview EXpenses. Metricom shall reimburse. the City at City's standard rates for reasonable attomeýs fees and other project review expenses relating to the preparation and review of ffiis Use Agreement, promptly upon receipt of iten$ed bills, paid invoices, and other such documentation as Metricom shall reasonably require, and in a total amount not to exceed One Thousand Dollars ($1,000); The reimburæmenrpmvided furinthis-§-4::4: shaJl not replace or JUgbJ-<f-Way Permit and Facility Use Agr.....ent City ofClumhasserr :: Metrkom, lite. Page7of16 excuse Metricom from the payment of any applicable permit fee for work undertaken pursuant ID the initial installation of the Radios. 4.5 Municipal Subscriber Program. City shall have. the right throughout the term .gÍ·this Use Agreement ID r~eive up ID the maximum number specified below (based upon the City's population) of free Ricochet® basic service subscriptions. The number öffi:ee subscriptions which the City may receive shalL be. determined in accor<4mce 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 ID a maximum of ten (10) free subscriptions; (b) for. municipalities with a population of between 100,000 and 249,000, up ID a maximum of fiflEen (15) free subscriptions; (c) for municipalities with a population of between 250,000 and 500,000, up ID a maximum of twenty (20) free subscriptions; and (d) for municipalities of over 500,000, up ID a maximum of twenty-five (25) free t:>ukuil'liulIt:>. Ciiy shan J=il;'utre one person who shall be responsible for ordering and receivirlg any subscriptions. To take advantage of this program, the designated irldividual should conta.ct Metricom's Network Real Estate-lJepftrtmeflt at the address stated irI § 8 below City's right ID use the subscriptions shall commence at the time that Ricochet® service is commercially available irI the City and shall exlend.until the expir~ of- the term- of \his.. Use Agreement or through the length of time that Radios are deployed irI th-e Municipal Right of Way, whichever is longer. City's use of the subscriptions shall be subject ID the shmc1RTd. Ricochet® terms and condi.tions of use. City understands and agrees that modems and equipment required ID utilize the subscriptions and' any addifíonal service subscriptions or service options the City may desire may be obtained from an authorized retailer at market rates current from time ID time. City shall use all subscriptions provided pursuant ID this section solely for its own use and shall not be entitled ID resell, distribute, or otherwise pel'lIlitthe use of same by any other person, excepting a local public entity that provides public service withirl the wl.lAJ1ale bOulId/lde5 of the-Ciiy (e.g;, J..IIu.l..;..ipal schools, public safety, or fire deparbnents, etc.). The level of benefits and service provided ID City by Metricom as "basic service" shall not be diminished or reduced during the term oflhis-- Use- Agreement or renewal thereof or prior ID its cancellation or termination, as the case may be. 4.6 Most-Favored Municipality Clause. Should Metricom after the parties' execution and delivery of this Use Agreement enter irllD a right-of-way pemút and fa€ility use agreement with another municipality of the same Right-cf-Way Permit and Facüity Use AgrmnerJt City ofChanhassen. :: Metr;com, Inc. Page 80[16 size or smaller than the Cit:y as compared with cities in the Minnesota counties of Anoka, Carver, Dakota- Hennepin, Ramsey, Scott and Washington, which.agreementconlains either (a) a higher Right-of Way Management Reimbursement as described in § 4.1 above or (b) a higher Arutual Fee as described iri §Æ2 above or (c) a higher amount of Reimbursement of City's Project Review Expenses as described in § 4.4 above, Cit:y shall have the right to require that Metricom modify this Use Agreement w' incorporate fñe same or substantially similar superior benefits and such other terms. 5 RELocATION AND DISPLACEMENT OF RADIOS. Metricom understands and acknowledges that Cit:y may require Metricom to relocate one or more of its Radios, and Metricom shill atCity'"sditection relocatesueb Radios at Metricom's sole cost and expense, whenever Cit:y reasonably determines that the relocation is needed for any of the following purposes: (a) if required for the construction, completion, repair, reIocation,orma:i:nfena:nœ of-aCity- project; (b-)- because- the Radio is interfering with or adversely affecting proper operation of Cit:y-owned light poles, traffic signals, or other Municipal Facilities; or (c) to protect or preserve the public health or safet:y. In any sueh case, Cit:y shft-Il·~l'easÐl1tIWe- efforts to- affurd Metricom a reasonably equivalent alternate location with no dut:y to incur any expenses orcöst to Cit:y. If Metricom shall fail to relocate any Radios as requested by the Cit:y within a reasonable time under the cin;umsÚlIK:es- in accordam:e with- the foreggmg provision, Cit:y shall be entitled to relocate the Radios at Metricom's sole cost and expense; Witllout further notice to Metricom. To the extent the Cit:y has actual knowledge thereof, the Cit:y will attEmpt promptly In inform. Mprnmm of the displAl'pmPtltor removal of any pole on which any Radio is located. 5.1 Relocations at Metricom's Request. In the event Metl'icom desires to relocate any Ritdíos from one MUnicipal Facilit:y to another, Metricom shall so advise City. Cit:y will use reasonable efforts to accommodate Metricom by making another reasonably equivalent Municipal Facilit:y available for use in accordance willi and subject to the terms and conditions of this Use Aueement 5.2. Damage to Public Rigb.t of Way. Whenever the removal or relocation of Radios is required or permitted under this Use Agreement, and such removal or relocation shall cäti.Se the Public Right of Way to be damaged, Metricom, at its sole cost and expense, shaU'promptly repair and return the Public Right of Way in whieb the Radios are located to a safe and satisfactory conditimrm accordance with applicable Laws, normal wear and tear excepted. If Metricom dciëS not repair the site as just described, then the Cit:y shall have the option, upon fifteen (15) days' pl'ior written Right..cf-way Permit and Facility Use Agreement City of Chanhassen :: Mdricom, IIIC. Page 90116 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 rales. Upon the receipt of a demand for payment by the City, Metricörit shaIrpl'omptly reimburse the City for such costs. 6 INDEMNIFICATION AND WAIVER. Metricom agrees to indemnify, defend, protect, and hold harmless the City, its council members, officers, and employees from and against any and all claims, demands, losses, damages, liabilities, fines, charges, penalties, adritÏÌ1iStrafiv'ë and judìcfu1 proceedirlgs and orders, judgements, and all costs and expenses incurred irI connection therewith, irlcludirlg reasonable attorney's fees and costs of defense (collectively, the "Losses") directly or proximately resulting from Metricom's activities undertaken pursuant to this Use Agreement, exceptto the extent arisirlg from or caused by the negligence or willful misconduct of the City, its council members, officers, employees, agents, or contractors. The foregoirlg notwithstandirlg, Metrirom-shaII defend and- mdemnify the City, and-its officers and employees, even irI the case of negligence, unless the allegations allege (a) irldependent negligence on the part of the City, its officers and employees or (b) a wrongful act or omission on the part of the-Cityor its effieet'&Of employees; Metricom sha-Il aJse-defend and irldemnify the City, its officers and employees, even irI the case of negligence, if the allegations are based on the City's or its officers or employees' negligence or otherwise wrongful act oromissioR in issuing a· pennit to Metri{;om or appl'Ovirlg this Use Agreement, or irI failirlg to properly or adequately irlspect or enforce compliance with the terms, conditions or purpose of any permit 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 ~. on account of any loss, damage, or irljury to any Radio or any loss or degradation of the Services as a result of any event or occurrence 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 City's Liability. The City shall be liable only for the cost of . repair to damaged Radios arisirlg from the negligence or wilHul miscond uct of City, its employees, agents, or contractors. 7 INsURANCE.. Metricom shall.obtain and maintain atalUimes durirlg the term of this Use Agreement Commercial General Liability irlsurance and Commercial Automobile Liability insurance protecting Mëtricom irI an amount not less than One Million Dollars ($1,000,000) per occurrence (combirled sirlgle limit), irlcludirlg bodily irljury and property damage, and irI an amount not less than One Million Dollars ($1,000,000) annual aggregate for each personal irljury liability and products-completed operations. Right-of-Way Permit and Facüity Use Agreemmt City o/Chanhassen :: Metrico"" Inc. PRge100f16 The Commercial General Liability insurance policy shall name the City, its courlcil members, officers, and employees as additional insureds as respects any covered Iiability_arising_out of MetriconLsHperformance of work urlder this Use Agreement Coverage shall- be irI an occurrence form -and irI accordance with the limits and provisiOns specified hereirl:- CJa:ím&.made policies are not acceptable. Such insurance shall not be canceled, nor shall. the occurrence or aggregate limits set forth above be reduced, urltiI the City has received at least thirty (30) days' advance written notice of such cance11ll.tion Or change. Memcom shall be responsible for notifyirlg the City of such change or cancellation. Prior to any five(5)-year renewal term, pursuant to Section 2 of this Use Agreement, the parties may irI good faith bargain to irlcrease the abovemÎIwHuu,ÎIu>uli:I11C!! amounts, if such an irlcrease is warranted by irldustry standards. Such irlcrease, if any, shall not be effective urltiI the commencement of such renewal term. Prior to any five (5)-year renewal term, pursuant to Section 2 of this Use Agreen.ent, the-City mtty request-andthe-pttrlies--shaHbargain irI good faith to irlcrease the above minimum insurance amourlts, if such an irlcrèase is warranted by irldustry standards or specific identified risk. Such irlcrease, if any, shall not be effective urltiI the-commerI<Zement of such- renewal!erm. 7.1 Filittsof Ceftifie~attd End6l'8£Dteats. Prior·1D the commencement of any work pursuant to this Use Agreement;- Metricom shall file with the City the required original certificate(s) of insurance with endorsements, whichshaU staæ- the followmg: (a) the pelky numbeF; name of. insurance company; name and address of the agent or authorized representative; name and address of insured; project name; policy expiration date; and specific.coverageamc:lunts; (b) that the City sltall receive thirty (30) days' prior notice of cancellation; (c) that Meh'icom's Commercial General Liability insurance policy is primary as respects any other valid or collectible insurance that 1he CiJ:y may ¡x>æess,mcludirlg any self-insured 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 contribuœ with this insurance; and (d) that. Meuirom's Gmlmercial General Liability insurance policy waives any right of recovery the insurance company may have against the City. R;glrt-of-Way Permit and Fadlity Use Agree,nent City ofChanhassen :: Metricom, lnc. Page l1of16 The certificate(s) of insurance with endorsements and notices shall be mailed to the City at the address specified irI § 8 below. 7.2 Workers' Compensation Insurance. Metricom shall obtain and maintain at all times--.during the term-of this- Use Agreement statutory workers' compensation and employer's liability insurance irI an amount not less than One Million Dollars ($1,000;000) and shall furnish the City with a certificateshowirlg proof of such coverage. 7.3. 1Asurer..Criterú.~. Any. insurance provider of Metricom shall be admitted and authorized to do busirless irI the-State of Minnesota and shall carry a minimum rating assigned by A.MBest & Company's K£y Rating Guide of ",N' Overall.and a Financial Size Category of "X' (i.e., a size of $500,000,000 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 Interest. Any deductibles Qr self-insured retentions must be stated on the certificaie(s) of insurance, which shall be sent to and approved by the City. "Severability of irlterest" or "separation of insureds" clauses shall be made a part of the Commercial General Liability and Commercial Automobile Liability policies. 8 NOTICES. All notices which shall or may be given pursuant to this Use Agreement shall be in writing and delivered personally or transmitted (a) through the United States mail, by registered or certified mail, postage prepaid; (b) by means of prepaid overnight delivery service; or (c) by facsimile or email transmission, if a hard copy of the- same- is followed by del:iyery through the- U. S; mail or by overnight delivery service as just described, addressed as follows: if to tire City: CITY OF CHANHASSEN Attn: City Manager - Scott Botcher 690City Center Drive Chanhassen, MN 55317-0147 if to Metricom: . METRK:OM,INc. Attn: Network Real Estate 980 University Avenue Los. Gatos,.CA 95032 Right-oJ-Way p"",it and Facility Use Agreement City ofChanhnssen :: Melricom, Inc. Pngel2of16 , . 8.1 Date of Notices; Changing Notice Address. Notices shall be deemed given upon receipt irI the case of personal delivery, three (3) days after deposit.irI the. mail. or the nextbusiness day irI the case of facsimile, email, or overnight delivery. Either party may from time to time designate any other address for this purpoSë· by written notice to the other party delivered irI the manner set forth above. 9 TERMINATION. This Use. Agr-mPnt.may be terminated by either party upon forty five (45) days' prior written notice to the other party upon a default of any material covenantor term hereof by the offièr party,whidi defaul~is not cured withirl forty-five (45) days of receiptof written notice of default (or, if such default is not curable within forty-five (45) days, if the defaulting parly fails to commence such cure withirl 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 Aö,cclllc"t'a:re-irrevocable-du,¡',g the-term. 10 AsSIGNMENT; This Use' Agreemenrshall not- be assigned by Metricom without the express written consent of the City, which consent shall not be unreasonably withheld, conditioned, or delayed. Notwithstandirlg the foregoirlg, the transfer of the rights and obligations of Metricoml,eJe<u.de, to a parent; subs¡diAty, or firlancially viable affiliate of Metricom or to any successor-irl-irlterest or entity acquiring all or substantially all of Metricom's outstandirlg voting stock or assets shall not be deemed an assignment for thepurposes-of this-Use Agreement 11 MtseELUNEOeS-PROVISIeNS; The-provisions-which follow shall apply generally to the obligations of the parties under this Use Agreement 11.1 Nonexclusive Use. Metricom understands that this Use Agreement does not provide Metricom with exclusive use of the Public Right of Way or any M1ffiieipftl-Faeility andthatCiIy shallhttve the right to permit other providers of communications services to irtstall equipment or devices irI the Public Right of Way and on Municipal Facilities. City agrees promptly to -notify Mettkom-of 'the J'e(;eipt oEa proposa.1 for the installation of communications equipment or devices irI the Public Right of Way or on Municipal FäciIities. In addition, City agrees 10 advise other providers of communications. services of .the. prese.oce or planned deployment of the Radios irI the Public Right of Way and/ or on Municipal Facilities. 11.2 Waiver of Breach. The waiver by either party of any breach or violation of any provision of ffiis uše Agreement shall not be deemed 10 be a waiver or a continuing waiver of any subsequent breach or violation of the same or any otller provision of this Use Agreement Righl-oJ-Way Permit and Facility Use AgræJllent City of Cha"ha.... :: Metrico.... J"e. Page 13of16 , . 11.3 Severability of Provisions. If anyone or more of the provisions of this Use Agreement shall be held by 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 Use Agreement and shall not affeCt the legality~ validity, or constitutionality of the remaining. portions of this Use .Agreement Notwithstanding the foregoing, the parties agree that if a court or administrative agency of competEnt jurisdiction should" declare a provision(s) of Section 4 of this Use Agreement invalid, then the parties shall each be obligated to negotiate in good faith to amend Section 4 of this Use Agreement and if, afterorœ- lumJœd-and eighty (180) days from the commencement of negotiations or such extension thereof that may be agreed by the parties, the parties are unable to reach agreement on amendments hereto, then this-Use Agret:H,CI'Itmaybe-iermÌflftted byeifuer party. 11.4 Conta:ctingM.:h~"UUl.Metricom shall be available to the staff employees of any City department 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, installation, operation, maintenance, or removal of the Radios.' -The City may contact by telephone the network control center operator at telephone number (8OOf873-3468-regat'ding such problems or complaints. 11.5 GEWeming Law¡- Jurisdk-tiÐnö 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 suit is brought by a party to this Use Agreement,.the pat'tiesagree that trial of such action shall be vested exclusively in the state courts of Minnesota, County of Càrver, or in the United Stares District COurt for the District of Minnesota. 11.6 Attorneys' Fees. Should any dispute arising out of this Use Agreement lead to litigation,. the prevailing party shall be entitled to recover its costs of suit up to an amount of Five Thousand Dollars ($5,000.00), including (wifI10ut limitation)"reasonable attorneys' fees. 11.7 Consent Criteria. In 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 11.8 KepresentatiOits andWóUTanties. Eacli' of the parties to this Agreement represents and warrants that it has the full right, power, legal capacity, and authority to enter into and perform the parties' respective obligations Right-of-Way Permit and Facility Use Agreement Oty ofChanhassen :: Metricom. lac. Page 14Ðf16 hereunder and that such obligations shall be binding upon such party without the requirement of the approval or consent of any other person or entity in connection herewith.- except as provided in § 3.2 above. 11.9 Amendment of- Use Agreemenl This Use Agreement may not be amended except pursuant to a written instrument signed by both parties. 11.10 Entire Agreement. This Use Agreement contains the entire understanding between the parties with respect to the subject matter herem.. There are no representations, agreements, or understandings (whether oral or written) between or among the parties relating to the subfect matter oftfiìS Use A:greement which are not fully expressed herein. RigllI-of-Way Pernút and Facility Use Agreement City ofC¡"mhasseJt :: Metricom, Inc. Page 15of16 In wit n e ssw her e 0 f I and irI order to birld themselves legally to the terms and conditions of this Use Agreement; the duly authorized representatives of the parties haveexeettœd this Uæ Ag,eeII.ent ðßof the Effective Date. City: em OF CHANBASSEN , a Minnesota municipal corporation By: Scott Bob:her . ¡...mefypt>lJ Its: City Manager Date: By: Nancy Mancirlo {fUlme typed] Its: Mayor Date: Metrico1ll: METRICOM; INC., a Delaware corporation By: /1l1l11lCtypedj Its: Date: Right-of-Way Permit aJ/d Facility Use Agreement City ofClumhassen ;: Metricom, Inc. Pas, 160[ 16