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2019-035 20190288 Hunter Communications
T City of Ashland Internet Bandwidth Service Agreement } Internet Service Agreement Internet Service Agreement ("Agreement") dated November 1, 2018, between the City of Ashland, hereinafter referred to as "City," and Hunter Communications, hereinafter referred to as "Provider." I i 1. Services. City shall purchase and Provider shall provide to City: 1.1. Data Services. Data Services access by City to Provider's telecommunications system to receive 10Gbps Direct Internet Access (DIA) at the point of delivery indicated below: • Ashland fiber Network 90 North Mountain Ave Ashland, OR 97520 The point of delivery is the location where the network and City's system are interconnected. The data services provided shall meet all the service standards of section 4. k 1.2. Installation Services. Installation services consist of coordinating with City the necessary engineering, site survey, system configuration and other services necessary to provide City Data Services. These services shall be provided up to the date that the service testing is completed based on Provider's customary testing procedures and the service is available to the City ('the service acceptance date"). In addition, Provider will provide the equipment (collectively referred to as "Provider facilities' necessary to connect City's facilities to the network. 2. Term. This Agreement will be effective upon the date executed by Provider and shall continue for two (2) years, unless sooner terminated as provided in this Agreement. This g Agreement shall be subject to quarterly financial reviews, the first of which shall occur three (3) months from the date executed by Provider. The final financial review will be completed prior to extension of this Agreement. As part of the quarterly financial review, Provider will provide to City all applicable information necessary for review, including but not limited to: i • City's Bandwidth Consumption, • Service rates, • Provider bandwidth costs, and • Provider support costs. City has the option at the time of the final financial review to renegotiate the Agreement pricing and renew for an additional twelve (12) month term. To renew the Agreement for an additional twelve (12) month term, both parties must agree to the extension in writing. This Agreement may be renewed for a maximum of three (3) additional twelve (12) month terms. c 3. Charges. City agrees to pay for Provider's services in accordance with the Fee Schedule attached as Exhibit A and incorporated herein by this reference. 3.1. Data Services Rates. From the service start-up date, City shall pay the rates indicated for the First 10 Gbps Direct Internet Connection as specified in Exhibit A. If data AFN - Internet Bandwidth Agreement, Page I service does not begin on the first day of a billing cycle, then payments for the first month shall be prorated on a daily basis. All accounts will be invoiced on the first day of each month, and all sums shall be paid within 20 days after the date of the monthly billing for services (the "due date"). Provider shall include detailed usage and pricing on each invoice submitted to the City i for payment. f 3.2. Installation Services Charge. City shall pay the installation charges specified in Exhibit A for the installation services provided by Provider and approved by the City. Such charges shall be due and payable upon onsite installation of the fiber terminating hardware. Installation shall establish the due date of the installation charges and the service acceptance date. Upon service acceptance by the City, the prorated data service charges of subsection 3.1 shall apply. The City maintains the right to refuse installation and service if, in the City's discretion, the service will not meet all standards of section 4. 3.2.1. Uninterruptible Power Supply. City shall provide a form of uninterruptible power for the fiber termination hardware and any of Provider's facilities or equipment at the City's location. If the City does not provide an uninterruptible power source, Provider will provide one in accordance with Exhibit A. 3.3. Late Payment, Deposit. Payments received after the due date may be subjected to a charge of 1% per month on the unpaid balance at the discretion of Provider. Provider may require City to pay a deposit before providing any service. Provider shall hold any such deposit in a non-interest bearing account and deposited funds shall be used to satisfy (in whole or in ? part) any obligation of City under this Agreement. 3.4. Taxes, Fees, Government Charges. City agrees to pay any applicable taxes, franchise fees or other governmental charges imposed upon Provider by governing body with jurisdictional authority over this service or for use of public right of ways and easements. 3.5. Cost Savings. To encourage Provider to innovate and take advantage of new technologies that may can provide cost savings to the City, this Agreement and Exhibit A may be changed by an addendum at any time during the term of this Agreement to provide for an allocation of the cost savings between City and Provider for mutual benefit. 4. Service Requirements and Performance Standards. 4.1. Minimum Requirements. Provider agrees to provide data services and equipment to City that meet the following minimum requirements: (a) Minimum single link speed of 10 gigabits per second, (b) Packet delay not to exceed 12ms at 10 gigabits per second network loading per link to Provider's upstream network interfaces, (c) BGP4 routing management of AFN's Autonomous System Number, 4.2. Performance Standards. Provider agrees to provide data services that meet the following standards: f AFN - Internet Bandwidth Agreement, Page 2 (a) Internet bandwidth must be fully operational 99.9% of the time it is scheduled to be so, (b) Internet bandwidth must maintain packet delay not to exceed 12 milliseconds at 10 gigabits per second, (c) Provider shall have a specific process in place specifically for City use to process/execute work orders, (d) Provider shall have expert staff available and accessible via the designated toll-free numbers 99% of the time, and (e) Provider shall follow the Outage Notification and Resolution Protocol in section 6. 5. Provider Facilities and Equipment. Provider shall, at its expense, undertake all necessary preparations to install and maintain its equipment upon City's premises or in other locations that are required for Provider to deliver data services, except for any costs agreed upon by City pursuant to subsection 7.1. Any Provider facilities and/or equipment installed on City's premises shall be, and remain, the property of Provider and may be repaired or replaced, in coordination with the City, at any time and removed at the termination of service. The City will not charge rent to Provider for placing or maintaining mutually agreed facilities and/or equipment upon City's premises for the exclusive purpose of providing Data Service to City under the terms and conditions of this Agreement. Provider shall be entitled, at any time coordinated with the City, to affix to Provider facilities or equipment a label indicating the interest of Provider. 5.1. Removal. City will use reasonable efforts to ensure that Provider facilities and/or equipment are not removed or caused to be removed by any person, other than Provider or without Provider's prior written consent. 5.2. Proper Environment. City shall use reasonable efforts to keep the location of Provider's facilities and/or equipment in the proper environment as specified by Provider and agreed to by the City. 5.3. Damage. City agrees to exercise due care and caution to protect Provider's facilities and equipment from the weather, vandalism and other potential problems. City shall be liable for any loss or damage to Provider's facilities and/or equipment at any location arising from City's negligence, intentional act, unauthorized maintenance or other cause within the reasonable control of City, its employees or agents. In the event of any loss or damage to Provider's facilities or equipment for which City is liable, City shall reimburse Provider for the lesser of the reasonable cost of repair or the actual cost of replacement. 6. Outage Notification and Resolution Protocol. 6.1. Degradation of Service Requirements and Performance Standards. Provider shall notify City within three (3) hours of when Provider knows or should have known about any degradation of its data services. Degradation occurs when Provider is providing data services, but those services fail to meet the service requirements and performance standards in section 4. Failure to resolve the degradation in accordance within the time periods in AFN - Internet Bandwidth Agreement, Page 3 subsection 9.3 shall result in liquidated damages, and such continued failure may result in termination pursuant to section 9. 6.2. Outage. Provider shall notify City within one (1) hour if Provider is unable to provide data services due to an outage that is not due to a force majeure. Provider shall restore data services within eight (8) hours. Failure to restore data services in accordance with this section and subsection 9.3 shall result in liquidated damages and may result in termination pursuant to section 9. 6.3. Emergency. Provider shall notify City immediately if Provider is unable to provide data services due to a force majeure. 7. Rights and Obligations of City. 7.1. Installation. City shall provide necessary consent for the installation and use of its property by Provider's facilities and/or equipment, including consent to necessary alterations of City buildings. City shall provide a suitable and safe working environment for Provider's personnel in City facilities, including an environment safe from environmental hazards. City agrees to make other accommodations that are mutually agreed upon prior to execution of this contract. 7.2. Premises Access. City shall provide Provider or other persons authorized by Provider with access (on both a routine and emergency basis) for the implementation of all service. City will provide Provider reasonable access to the City premises where any Provider facilities or equipment are installed as coordinated by the City and Provider. Provider shall not be responsible for any failure to perform the provisions of this Agreement to the extent that Provider, in good faith, attempts to access facilities and/or equipment necessary to remedy the failure that are located on City property if City fails to provide access to such location. (a) During implementation, Provider will normally carry out work required to install and/or repair Provider's facilities and equipment during its normal working hours but may, on reasonable notice, require access at other times. At City's request, Provider will carry out work to install Provider's facilities and equipment outside Provider's regular working hours, in which event City agrees to pay the difference between the overtime rate and the standard rate and any other appropriate charges agreed between the parties. (b) Any out-of-pocket costs, reasonably incurred by Provider as a consequence of the denial of access by City to any of City's locations, shall be paid by City. Provider shall advise City of any such costs on a case-by-case basis. 7.3. City's Connection to Data Services. (a) Upon notice from Provider that any equipment or software not provided by Provider is causing or is likely to cause a hazard, interference, or service obstruction to data services, Provider and City shall coordinate the elimination of the hazard, interference, or service obstruction. (b) City will only connect to the network to receive data services using industry standard equipment that has compatible standards with the service specifications set forth in applicable technical publications. Provider may suspend the provision of.data services to any connection so AFN - Internet Bandwidth Agreement, Page 4 u affected if service to the City would directly and solely cause the cessation of Provider's network to function. Following remedial action by City satisfactory to Provider, Provider will reinstate data service provided through that connection as soon as possible. , (c) City will cooperate with Provider in setting the initial configuration for its equipment interface with the network. (d) Provider may from time to time issue technical instructions on the use of the network to ensure the proper functioning of the services or the protection of the network from damage or deterioration. City will observe technical instructions. 7.4. System Integrity. City must cure any violation (other than failure to pay) of the provisions of this Agreement within 30 days after receiving notice from Provider. 7.5. Provider Equipment Movement. City is obligated to obtain written approval from Provider prior to moving any of Provider's equipment. Moving of equipment without authorization may cause damages and/or an outage. A City-caused outage, due to the moving of equipment without written authorization, will be the sole responsibility of the City. Costs for' repairs performed by Provider technicians as a result of damages due to movement of Provider equipment shall be borne by the City. No deductions to billing will be made for City-caused outages. 8. Provider's Acceptable Use Policy for Provider IP Products and Services. Provider's use policy, if any, shall be attached as Exhibit, B and is incorporated herein by this reference. 9. Termination. 9.1 For Cause. Either party may terminate this Agreement for cause, provided written notice is given to the other party specifying the cause for termination and requesting correction within 10 days for failure to pay a sum due, or within 30 days for any other cause, and such cause is not corrected within the applicable period. Cause is any material breach of the terms of this Agreement, including the failure to pay any amount when due, the filing of a petition in bankruptcy by or against either party, City's inability to meet obligations when due, or failure of Provider. Provider will furnish copies of such policies upon request. 9.2. Operation Standards of Performance/Liquidated Damages. Specific functions and performance described in the RFP must operate at or above levels specified in the RFP; and all functions, whether or not described in the RFP, must operate and perform at or above levels meeting the requirements of this Agreement, and, those of section 4. The Parties acknowledge that operation and support of the solution depend upon cooperation and diligence by the City as well as Provider. In the event of unsatisfactory performance by Provider in providing operations and support of Internet bandwidth and Provider's inability to enable the honoring of the sale of services through no fault of the City, Provider shall be responsible for the direct payment to the City for any liquidated damages as provided in this Agreement. Fault of the City shall include, without limitation, delays beyond the time allocated or mutually agreed AFN - Internet Bandwidth Agreement, Page 5 t upon between the Parties for the City to provide information, work input, or approvals necessary for the Provider to proceed. The maximum liability of the Provider for liquidated damages and other damages provided for in this Agreement, shall not exceed the total value (three-month average monthly cost of service times duration of contract) of the Agreement. Provider shall pay the City the following amounts in connection with the following deficiencies. When unsatisfactory performance by Provider affects more than one of the following E deficiencies (subparagraphs 93(a)(1) through 9.3(a)(7)) and where one of the deficiencies is clearly the cause of the other(s), Provider shall be liable to pay only the amount of the damage c for the deficiency resulting in the greatest amount of damages. (a) As to noncompliance with standards below, such damages shall accrue from the fi date(s) that unsatisfactory performance has occurred and will continue through the resolution of such deficiency provided the City gives written notice of such deficiency as soon as reasonably practicable, but no later than sixty (60) business days after Provider's provision of 4 3 information to the City by which the City can determine Provider's compliance/noncompliance with said standards. If the City gives written notice more than sixty (60) business days after Provider's provision of such information, then such damages shall accrue (Paragraph A. notwithstanding) from the date of Provider's receipt of written notice from the City of noncompliance with said standards; unless the damages are waived in writing by the City or excused by force majeure. (1) Bandwidth Availability. Internet bandwidth must be fully operational 99.9% of the time it is scheduled to be so. Outage periods for maintenance will not be counted against this r performance level if agreed to, in advance, by both parties. If the bandwidth is nonfunctional or inaccessible more than 0.5% in any 90-day period, the Provider shall be liable to the City for $1500.00 for each quarter of such occurrence. For each full or partial one-tenth of a I percentage point over .5% that the solution is nonfunctional or inaccessible, the Provider shall be liable to the City for an additional $500.00 for each month. Provided however, the Provider shall have no liability to the City under the provisions of this Paragraph if the solution is nonfunctional or inaccessible due to a general failure of public telecommunications or other force majeure. (2) Provider Availability. The Provider must have expert staff available and accessible via the E designated toll-free numbers 99% of the time. Provider must also have staff capable of responding to 90 N. Mountain, Ashland, Oregon, within thirty (30) minutes if necessary to E resolve the problem. If the Provider's staff are inaccessible more than 1.0% in any month, the Provider shall be liable to the City for $500.00 that month. For each full or partial one-tenth of a percentage point over 1.0% that the system is nonfunctional or inaccessible, the Provider shall be liable to the City for an additional $250.00 for each such fraction of a percentage per month. The Provider will provide measured results of the occurrence of periods where no staff are available. Provided however, the Provider shall have no liability to the City under the provisions of this Paragraph if the inaccessibility of the Call Center Website is attributable to a general failure of public telecommunications or other force majeure. i (3) Internet bandwidth. Service must provide no less than 10 gigabits per second speed 99.9% of the time. If the bandwidth performance drops below 99.9% in any 7-day period, the Provider shall be liable to the City for $2000.00 for each occurrence. For each full or partial r one-tenth percentage point over .1% that the solution does not perform to this standard, the AFN - Internet Bandwidth Agreement, Page 6 4 t Provider shall be liable to the City for an additional $500.00 for each 7-day period. Provided however, the Provider shall have no liability to the City under the provisions of this Paragraph if the solution is nonfunctional or inaccessible due to a general failure of public telecommunications or other force majeure. (4) Response Time. Internet bandwidth must maintain packet delay to not exceed 12 x milliseconds at 10 gigabits per second. If the packet delay performance rises above this threshold in any 7-day period, the Provider shall be liable to the City for $2000.00 for each occurrence. For each hour that the solution exceeds the performance threshold, the Provider I shall be liable to the City for an additional $50.00 per hour for each full millisecond over 12 milliseconds. Provided however, the Provider shall have no liability to the City under the provisions of this Paragraph if the solution is nonfunctional or inaccessible due to a general failure of public telecommunications or other force majeure. (5) Provider Response. City staff must receive correct, reliable information about the solution in a timely fashion, as well as answers to questions they have regarding any aspect of its operation as they relate to equipment or any problems caused by the solution to operate in accordance with the Agreement using the contact information and order provided by the Provider. If more than 5% of such calls for assistance remain unresolved for more than two (2) days, the City shall notify Provider of such event as soon as is practicable, explain the specific unresolved complaint, and determine if a violation has occurred for which liquidated damages would be payable. If so, and if within two (2) business days after receipt of such notice, the Provider has failed to satisfactorily resolve said complaint by taking appropriate action to repair/replace hardware or software, or reasonably assist with diagnosing other problems not within the control of the Provider, and to the extent compensation for such damages is not provided for elsewhere in the Agreement. For each full percentage point over 5%, the Provider shall be liable to the City for an additional $250 per day. In no event shall the Provider be liable for failure to remedy a problem not within Provider's control, unless the Provider has not provided reasonable assistance in diagnosing other localized problems not within the control of the Provider or provides an incorrect diagnosis due to negligence on the part of the Provider. (6) Storage of Data. Specific customer data from the City's services shall not be saved or utilized by the Provider for any purpose or reason. If data is saved, shared, or used in violation of this requirement, the Provider will be liable to the City for $100,000. Provided however, the Provider shall have no liability to the City under the provisions of this Paragraph for usage of metadata in the administration of the network and bandwidth, as well as if specific data is required by law, the direct order of a court of law and law enforcement, or other force majeure. (7) The Provider shall have a specific process in place to process/execute work orders. This 3 process shall account for thorough analysis, design, test, and implementation any changes. If, through no fault of the City, a work order is not accepted by the City as completed within two weeks of its scheduled completion date, the Provider shall be liable to the City for $1,000 per day until the work order is delivered by the Provider and accepted by the City. (a) The Provider shall be liable to the City for an additional $200 for each full or partial day of delay beyond the 15th day of the scheduled change or update. AFN - Internet Bandwidth Agreement, Page 7 I e t ' s '2s (b) The Provider shall provide notice pursuant to subsection 10.5 of its performance relative to the standards described in section 4, as well as all noncompliant performance, upon discovery of such noncompliance. (c) The Parties agree that damages from breach of this Agreement are difficult to prove or estimate, and the amount of liquidated damages specified herein represents a reasonable estimation of damages that will be suffered by the City from late performance, including costs i I of additional inspection and oversight and lost opportunity for additional efficiencies that would have attended on-time completion of performance. E i i (d) The rights and remedies granted to City under this section constitute City's sole and z exclusive remedy against Provider, it's agents, officials and employees for any and all claims arising under statutory or common law or otherwise. There are no third-party beneficiaries of this Agreement. City agrees that Provider shall have no liability for the negligence, products, services or websites of City; of affiliates; of developers or consultants identified or referred to City by Provider; or of any other third party, including but not limited to liability for the content, quality and accuracy of the foregoing which are accessible by use of the system or services of Provider. i 10. Miscellaneous Provisions. 10.1 Indemnification. To the extent legally possible, Provider shall indemnify and hold City, its officers, agents and employees, harmless from and against any and all claims, actions, liabilities, costs, including costs of defense, arising out of or in any way related to any act, failure to act, or negligence by Provider or its employees, agents, officers and contractors in connection with this Agreement. 10.2 Non-waiver. Waiver by either party of strict performance of any provision of this Agreement shall not waive or prejudice the party's right to require strict performance of the same provision or any other provision in the future. No waiver, consent, modification, or change of the terms of this Agreement shall bind either party unless in writing and signed by all r parties. Such waiver, consent, modification, or change shall be effective only in the specific instance and for the specific purpose given. i 10.3 Litigation and Attorneys' Fees. In the event that liquidated damages are not specified for the default that occurs, the City may elect to pursue an action in a court of competent jurisdiction. If any litigation is commenced between the parties to this Agreement a concerning this Agreement, or the rights and duties of either party, the prevailing party in that litigation shall be entitled, in addition to any other relief that may be granted in the litigation, to a reasonable sum for that party's attorneys' fees, including attorneys' fees on appeal. The amount of the fees shall be determined by the court in that litigation or in a separate action brought for that purpose. 10.4 Contract Administration. This Agreement shall be administered by the Information Technology Department through its AFN Operations Manager and by Provider i AFN - Internet Bandwidth Agreement, Page 8 (C through the representative listed in subsection 10.5. Either party may change its representative by providing the other party written notice of the new representative=s name and address. 10.5 Notices. Except as otherwise expressly provided by law, any and all notices or other communications required or permitted by this Agreement or by law to be served on or given to a party of this Agreement shall be in writing and shall be deemed duly served and { given when personally delivered to the party, any managing employee of the party, or, in lieu of personal service, when deposited in the United States mail, first class postage prepaid, s addressed to the appropriate party as follows: g CITY PROVIDER City of Ashland Hunter Communications i Attn: AFN Operations Manager Attn: President/CEO 90 N. Mountain Ave. 801 Enterprise Drive Ashland, OR 97520 Central Point, OR 97502 10.6 Amendments and Assignment. No amendment to this Agreement, or assignment of this Agreement will be effective unless it is in writing and signed by both parties. 10.7 No Warranties. To the extent permitted by applicable law, Provider is providing the services and the system (including but not limited to the Provider facilities and/or equipment and any access to the network). Provider agrees, to the extent feasible, that all equipment provided by Provider shall function to permit City access to the bandwidth purchased hereunder. Except for the obligations assumed by Provider under the terms and conditions of this Agreement, Provider hereby disclaims all other warranties, if any, either implied, statutory or otherwise, with respect to any of the system and services provided or to be provided under this Agreement, including but not limited to warranties of merchantability, fitness for a particular purpose, or lack of viruses. Provider makes no warranty of title, quiet enjoyment or lack of infringement with respect to the system or services. 10.8 Force Majeure. Neither parry shall be deemed in violation of this Agreement if it is prevented from performing any of the obligations under this Agreement by reason of severe weather and storms; earthquakes or other natural occurrences; strikes or other labor unrest; power failures; nuclear or other civil or military emergencies; acts of legislative; judicial; executive or administrative authorities; or any other circumstances which are not within its reasonable control. 10.9 Governing Law. This Agreement, and all matters relating to this Agreement, shall be governed by the laws of the State of Oregon in force at the time any need for interpretation of this Agreement or any decision or holding concerning this Agreement arises. 10.10 Severability. If any provision of this Agreement is held by a court, governmental agency, or regulatory body of competent jurisdiction to be either invalid, void, or unenforceable, the remaining provisions of this Agreement shall remain in full force and effect unimpaired by the holding. The invalidity of a section, subsection, paragraph, or clause shall AFN - Internet Bandwidth Agreement, Page 9 w . p~ I not affect the validity of the remaining sections, subsections, paragraphs and clauses as long as the parties can legally, commercially and practicably continue without the invalid provision. E 10.11 Entire Agreement. This Agreement and any attachments constitute the entire E and sole agreement between the City and Provider. Any agreements or representations respecting internet service or any related matters discussed in this Agreement not expressly set i forth or incorporated into this Agreement are null and void. INTENDING TO BE BOUND, the parties have executed this Agreement as of the date written below. City of Ashland: M"LA Date: ► is Kelly adding, City Admi trator Provider: r Co ications 3 Date: I i % iZ Z~ Richard Ryan, Presid t/CEO AFIP OVED AS T ~ ORM r. ?u As an Attomme AFN - Internet Bandwidth Agreement, Page 10 r HUNTER communications Proposed Flat Fees First 10 Gbps Direct Internet Access Connection $4500.00 / Month Flat Fee, $0 NRC Second 10Gbps Direct Internet Access Carrier and Physical Path Redundant Connection $3800.00 / Month Flat Fee, $0 NRC Optional 10Gbps Ethernet Private Line Transport to Raging Wire at 1200 Striker Ave, Sacramento, CA $6000.00 / Month Flat Fee, $9,500 NRC Optional 10Gbps Ethernet Private Line Transport to Pittock Building at 921 SW Washington, Portland, OR $4800.00 / Month Flat Fee, $0 NRC Optional 1Gbps Ethernet Private Line Transport to Pittock Building at 921 SW Washington, Portland, OR* $1800.00 / Month Flat Fee, $0 NRC *Not included in performance metric (Exhibit B) as it was not requested. Providing quote for information purposes. Any transport connection to Portland/Sacramento can be routed either from AFN Headend, DCW, or other peering point with Hunter. Market Cost History Hunter has revised its bandwidth costs to AFN multiple times over the years and has lowered cost per megabit in every occasion as well as enhanced redundancy and provided additional bandwidth. The AFN, in particular, would be reducing their bill $5100 / month, based on this proposal, if just taking the same services (10Gb delivered redundantly over two different carriers circuits). Cost per megabit, in this proposal, is under market value currently in Southern Oregon, especially considering that it is a carrier redundant solution. Bandwidth can be purchased less expensively in larger markets, but it must then be transported to the location where it is intended to be used - In this case, Ashland or Medford. Bandwidth Cost Trends / Future Projections It is clear based on price reductions to the AFN every 4-S years that bandwidth costs are trending downward. While costs will continue this downward trend, usage specifically by Residential end users will continue to rise with the high use of HD/4K over the top video services. The costs included in this proposal are well under current market value for redundant transit and internet pricing in this region. Hunter will continue to expand its network and connectivity to other providers in order to leverage increased uptimes, better global connectivity and lower prices. Hunter will make attempts to share all benefits and cost savings with the City whenever possible. All such factors will be taken into account during contractual financial reviews; if opportunities for modifications arise between financial reviews, Hunter agrees that contract terms may be modified by mutually agreed upon addendum. Page 3 Ago CERTIFICATE OF LIABILITY INSURANCE DATE(MMIDDYYVY) 06/18/2018 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT Tracy Abbott NAME: UNITEL PHONE (402)434-7200 AX Nn (402)434-7272 A C No Ext 1128 Lincoln Mall E-MAIL tabbott@unitelinsurance.com ADDRESS: Suite 200 i INSURER(S) AFFORDING COVERAGE NAIC # Lincoln NE 68508 INSURER A: National Farmers Union P & C INSURED INSURER B : Cincinnati Insurance CO. 10677 Hunter Communications, Inc. INSURER C : 801 Enterprise Dr. INSURER D : Suite 101 INSURER E Central Point OR 97502-3587 INSURER F COVERAGES CERTIFICATE NUMBER: 18/19 ALL LINES REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED NOTWITHSTANDING ANY REQUIREMENT TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS.. EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. IN ADOLrR POLICY EFF POLICY EXP LIMBS RR TYPE OF INSURANCE INSID XD POLICY NUMBER MM/DDIYYYY MM/DD/YYYY COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1 .000,000 DAMAGE TO RENTED CLAIMS-MADE © OCCUR PREMISES Ea occurrence $ 1.000.000 MED EXP (Any one person) $ 10,000 A Y 1RU4912680 06/2012018 06/20/2019 PERSONAL &ADV INJURY $ 1,000,000 VGEWL GREGAT E LIMIT APPLIES PERGENERAL AGGREGATE $ Unlimited RO [7 LOC PRODUCTS-COMP/OP AGG $ 2.000,000 ICY ❑ PJECT ER. AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ 1,000,000 (Ea accident ANY AUTO BODILY INJURY (Per person) $ A OWNED SCHEDULED 1 RU4912680 06120/2018 06/20/2019 BODILY INJURY (Per accident) $ AUTOS ONLY AUTOS HIRED NON-OWNED PROPERTY DAMAGE $ AUTOS ONLY AUTOS ONLY Per accident UMBRELLA LIAB OCCUR EACH OCCURRENCE $ 5,000,000 A EXCESS LIAB CLAIMS.MADE 1CB4912681 06/20/2018 06/20/2019 AGGREGATE $ 5,000,000 DED RETENTION $ 10,000 $ WORKERS COMPENSATION PER OTH- S _ AND EMPLOYERS' LIABILITY YIN TATUTE ER ANY PROPRIETORlPARTN E RIEXECUTIVE ❑ NIA E.L. EACH ACCIDENT $ OF cXCLUDED^ (Mandatory in NH) E.L. DISEASE - EA EMPLOYEE $ If yes, describe antler DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $ Limit $4.000,000 Excess Umbrella B EXS0391439 06/20/2018 06/20!2019 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) City of Ashland is Additional Insured CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF. NOTICE WILL BE DELIVERED IN City of Ashland ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE 90 N Mountain Ave Ashland OR 97520 @ 1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CONTRACTORS BLANKET ADDITIONAL INSURED - WAIVER OF SUBROGATION ENDORSEMENT This endorsement modifies insurance provided under the following: RURAL UTILITIES INSURANCE PLAN A. For the purposes of this endorsement only, the definition of Insured under GENERAL DEFINITIONS APPLICABLE TO THIS POLICY is amended by adding the following: any person or organization (called additional insured) whom you are required to add as an additional insured on this policy under a written contract or written agreement. The written contract or written agreement must be: 1, currently in effector becoming effective during the term of this policy; and 2. executed prior to the bodily injury, property damage, personal injury or advertising injury. B. The insurance provided to the additional insured is limited as follows: 1. That person or organization is an additional insured only with respect to liability for bodily injury, property damage, personal injury or advertising injury caused in whole or in part by: a. your acts or omissions; or b. the acts or omissions of those acting on your behalf. in the performance of your operations for the additional insured. 2. The Limits of Insurance applicable to the additional insured are those specified in the written contract or written agreement or in the Declarations of this policy, whichever is less. These Limits of Insurance are inclusive of, and not in addition to, the Limits of Insurance shown in the Declarations. 3. The coverage provided to the additional insured by this endorsement and the definition of contract under GENERAL DEFINITIONS APPLICABLE TO THIS POLICY do not apply to bodily injury or property damage arising out of the products-completed operations hazard unless required by the written contract or written agreement. 4. The insurance provided to the additional insured does not apply to: Bodily injury, property damage, personal injury or advertising injury arising out of the rendering of, or failure to render, any professional architectural, engineering or surveying services, including: a. the preparing, approving, or failure to prepare or approve maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifications; and b. supervisory, inspection, architectural or engineering activities. 5. We have no duty to defend or indemnify an additional insured under this endorsement: a. for any liability due to negligence attributable to any person or entity other than you or those acting on your behalf in the performance of your operations for the additional insured. b, for any loss which occurs prior to our named insured commencing operations at the location of the loss. c. until we receive written notice of a claim or suit from the additional insured as required in LIABILITY AND RELATED COVERAGES, V. CONDITIONS APPLICABLE TO LIABILITY AND RELATED COVERAGES, A. YOUR DUTIES IN THE EVENT OF AN OCCURRENCE, CLAIM OR SUIT. C. For the purposes of this endorsement only, LIABILITY AND RELATED COVERAGES, V. CONDITIONS APPLICABLE TO LIABILITY AND RELATED COVERAGES, A. YOUR DUTIES IN THE EVENT OF AN OCCURRENCE, CLAIM OR SUIT are amended as follows: RP472 (12/10) Includes copyrighted material of Insurance Services Office Inc., Page 1 of 2 used with its permission. Client; 011A180162 Policy: 1RU4912680 Effectiva:06M=018 Agent:5A039997 Printed: BATCH 0711V1707:02 Insured: HUNTER COMMUNICATIONS, INC. Address: 801 ENTERPRISE DR STE 101 CENTRAL POINT, OR 975023587 The following is added to YOUR DUTIES IN THE EVENT OF AN OCCURRENCE, CLAIM OR SUIT: An additional insured under this endorsement will as soon as practicable: (1) give written notice of an occurrence or an offense to us which may result in a claim or suit under this insurance; (2) agree to trigger or activate any other insurance which the additional insured has, which is primary, for a loss we cover under this policy by tendering the defense to the insurers of all such other insurance. D. For the purposes of this endorsement only, LIABILITY AND RELATED COVERAGES, V. CONDITIONS APPLICABLE TO LIABILITY AND RELATED COVERAGES, B. OTHER INSURANCE is deleted and replaced by the following: This insurance is excess over any other insurance naming the additional insured as an insured whether primary, excess, contingent or on any other basis unless the written contract or agreement specifically requires that this insurance be provided on either a primary basis or a primary and noncontributory basis. E. We have the right to recover our payments from anyone liable for loss covered by this policy. We will not enforce our right against a person or organization that is an additional insured under the CONTRACTORS BLANKET ADDITIONAL INSURED - WAIVER OF SUBROGATION ENDORSEMENT. Page 2 of 2 Includes copyrighted material of Insurance Services Office Inc., RP472 (12/10) used with its permission. Purchase Order Fiscal Year 2019 Page: 1 of: 1 THIS Pfd NU~~I3E i GSTAiHf' FZ N ALC- INVf3lGFS, AND SHIPPING DOCUMENTS B City of Ashland ATTN: Accounts Payable ~ 20 E. Main Purchase 20190288 Ashland, OR 97520 Order # T Phone: 541/552-2010 O Email: payable@ashland.or.us V H C/O Ashland Fiber Network N HUNTER COMMUNICATIONS, INC. 1 90 North Mountain Ave D 801 ENTERPRISE DR P Ashland, OR 97520 O CENTRAL POINT, OR 97502 T Faone: 5/552 243622 R O 541 734-2800 Donald Kewle 11/19/2018 37 FOB ASHLAND OR/NET30 Cit Accounts Pa able fftm~ Internet Bandwidth 1 10 Gbps Direct Internet Access (DIA) 8 MO $4,500.0000 $36,000.00 11 /01 /2018 - 06/30/2019 Project Account: 2 10 Gbps Direct Internet Access (DIA) 12 MO $0.0100 $0.12 07/01 /2019 - 06/30/2020 $4,500.00 per month Project Account: 3 10 Gbps Direct Internet Access (DIA) 4 MO $0.0100 $0.04 07/01 /2020 - 10/31/2020 $4,500.00 per month City of Ashland Internet Bandwidth Service Agreement Executed 11/15/2018 - Two (2) year agreement Project Account: GL SUMMARY 00.12 024700 - 024700 - 60400 $0.04 v B ``l Date: Autho~~2ed Std ature $36,000.16 FOB#3 CITY OF ASHLAND ~ i REQUISITION Date of request: 11/01/2018 Vendor Name Hunter Communications Address, City, State, Zip 801 Enterprize Drive Central Point OR 97502 Contact Name Carey Cahill Telephone Number 541-414-1440 Email address carey(a)hunterfiber.com SOURCING METHOD ❑ Exempt from Competitive Bidding ❑ Invitation to Bid ❑ Emergency ❑ Reason for exemption: Date approved by Council: ❑ Form #13, Written findings and Authorization ❑ AMC 2.50 -(Attach copy of council communication) ❑ Written quote or proposal attached ❑ Written quote or proposal attached If council approval required, attach co of CC ❑ Small Procurement ❑s Request for Proposal Cooperative Procurement Not exceedinq $5,000 Date approved by Council: ❑ State of Oregon Contract # ❑ Direct Award -(Attach copy of council communication ❑ Verbal/Written quote(s) or proposal(s) E] Request for Qualifications (Public Works E] State of Washington 1 Intermediate Procurement Date approved by Council: Contract # GOODS & SERVICES (Attach copy of council communication) ❑ Other government agency contract Agency Greater than $5,000 and less than $100,000 ❑ Sole Source Contract # ❑ (3) Written quotes and solicitation attached ❑ Applicable Form (#5,6, 7 or 8) Intergovernmental Agreement PERSONAL SERVICES El Written quote or proposal attached Form Agency i Greater than $5,000 and less than $75,000 ❑ Form #4, Personal Services >$5K & El Direct appointment not to exceed $35,000 ❑ Special Procurement ❑ Annual cost to City does not exceed $25,000. ❑(3) Written proposals/written solicitation Agreement approved by Legal and approved/signed by ❑ Form #4, Personal Services >$5K & <$75K ❑ Form 99, Request for Approval City Administrator. AMC 2.50.070(4) ❑ Written quote or proposal attached Date approved by Council: E] Annual cost to City exceeds $25,000, Council Valid until: (Date) approval required. (Attach copy of council communication) Description of SERVICES Total Cost F- I ttt~ 10Gbps Direct Internet Access (DIA) delivered to the Ashland fiber Network Headend located at 90 I North Mountain Ave Ashland, OR 97520 ($4,500/monthly or $54,000/annually) $ 10$,000.00 Item # Quantity Unit Description of MATERIALS Unit Price Total Cost 1 8 Month 10Gbps Direct Internet Access (DIA) 11/1/2018 - 6/30/2019 p 4,500.00 36,000.00 2 12 Month 10Gbps Direct Internet Access (DIA) 7/1/2019 -6/30/2020 4,500.00 54,000.00 3 4 Month 10Gbps Direct Internet Access (DIA) 7/1/2020 -10/31/2020 4,500.00 18,000.00 ❑ Per attached quote/proposal TOTAL COST Expenditure must be charged to the appropriate account numbers for the rnanaais to reflect the actual expenditures accurately. 108,000.001 Project Number - - - _ - - - Account Number 024700 - - 601400 - 36,000.00 Project Number _ _ - - _ - _ Account Number 024700 - . 601400 $ - - 54,000.00 - - Project Number _ - - - - - - Account Number 024700 - 604100 - - $ - - 18,000.00 - - lT Director in collabora7rr n with department to approve all hardware and software purchases: By signing this requisition f , 1c . ' e Cit s public contracting requirements have been satisfied. IT Director Date Support -Yes /No Employee: Department Head: ' (Eq I oo reaterthan ;5,000) ra' Department Manager/Supervisor: City Administrator: (Equalto orgre erthan ;25,000) Funds appropriated for current fiscal year. CY.ES~I NO nce Director qual to or greafer than $5.000) Date Comments: s Form #3 - Requisition Council Business Meeting October 16, 2018 Agenda Item Contract Approval - AFN Bandwidth From Donald Kewley AFN Operations Manager Contact donald.kewley(a_)ashland.or.us 541-552-2316 SUMMARY The City of Ashland's Internet Bandwidth contract with Hunter Communications expires October 31, 2018. The current contract provides AFN with 10 Gbps Direct Internet Access Connection (DIA) via the Headend located at 90 N Mountain Avenue. The City Council is being asked to authorize the City Administrator to enter into a contract with Hunter Communications for 20 Gbps Internet Bandwidth and 10 Gbps Transport. On August 13, 2018 AFN released a Request for Proposal (RFP) for Internet Bandwidth. The RFP provided the City of Ashland with an opportunity to achieve cost savings for Internet Bandwidth, carrier diversity, physical path diversity and improve its infrastructure. POLICIES, PLANS & GOALS SUPPORTED This contract award for Bandwidth will support the City's goal of reducing costs and achieving carrier & physical path diversity and operational efficiency. Council Goals Supported 17. Market and further develop the Ashland Fiber Network. 17.1 Complete and implement the AFN business plan. 15.1 Support film industry growth. 16.1 Position ourselves as a location where high-tech businesses want to grow. PREVIOUS COUNCIL ACTION October 3, 2017 the City Council approved extending the existing for Internet Bandwidth contract with Hunter Communications until October 31, 2018. Initially, Hunter Communications was awarded a contract resulting from a Request for Proposal (RFP) for an initial term of two years (November 1, 2015 to November 1, 2017) with the option to extend the contract for up to three (3) additional years for a total of five (5) years. BACKGROUND AND ADDITIONAL INFORMATION The sourcing method used to acquire these services is a formal Competitive Sealed Proposal (Request for Proposal). The City received a record number six (6) proposals in response to this RFP. The proposals were evaluated in accordance with the evaluation process and criteria established in the RFP and all six (6) proposals were deemed to be responsive by a five-person evaluation committee. To meet increasing consumer demand and successfully compete against the large national Multiple System Operators (MSO's) for customers, AFN needs to proactively pursue the most cost-effective means of procuring Page 1 of 2 CITY OF ASHLAND internet bandwidth (Transit and Transport). To facilitate this process, AFN adopted a carrier approach to obtaining internet connectivity in FY 2015. The carver approach allows AFN to participate in higher capacity connections and take advantage of wholesale pricing opportunities. Reduced Internet bandwidth costs help facilitate AFN's continued financial success and improves its ability to provide high-speed Internet to businesses and residences in the City of Ashland. FISCAL IMPACTS Fiscal Year Proposed Cost FY 2019 $134,416 FY 2020 $118,800 FY 2021 $118,800 The current budget for 10 Gbps of Internet Bandwidth is $170,000 per year. The new contracts would provide 20 Gbps Internet Bandwidth and 10 Gbps Transport for approximately $118,000 per year. Cost savings in the first year would be approximately $35,584 as the current Hunter contract ends in the middle of a fiscal year. Cost savings for year two is approximately $51,200 per year. The proposed solution will benefit AFN's subscriber base (City of Ashland, City of Medford, Ashland School District, businesses, residences, etc.), with increased reliability and provide safeguards for cataclysmic events. STAFF RECOMMENDATION Staff recommends approving the contracts for AFN's Internet Bandwidth and Transport to Hunter Communications, LS Networks and Cogent ACTIONS. OPTIONS & POTENTIAL MOTIONS I move to approve a contract for AFN Internet Bandwidth and transport contracts with Hunter Communications, LS Networks and Cogent. REFERENCES & ATTACHMENTS Attachment 1: Internet Bandwidth Service Agreement - Cogent Communications, Inc. Attachment 2: Internet Bandwidth Service Agreement - LS Networks Attachment 3: Internet Bandwidth Service Agreement - Hunter Communications Attachment 4: RFP Internet Bandwidth Evaluation Summary Page 2 of 2 CITY OF ASHLAND