LIMITED USE TELECOMMUNICATIONS FRANCHISE AGREEMENT

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1 LIMITED USE TELECOMMUNICATIONS FRANCHISE AGREEMENT THIS FRANCHISE AGREEMENT ( Agreement ) is made and entered into by and between the City of Ashland, an Oregon municipal corporation ( City ) and AT&T Corp, a New York corporation ( Grantee ). RECITALS 1. Pursuant to Federal law, State statutes, and City Charter and local ordinances, the City is authorized to grant non-exclusive franchises to occupy public rights-of-way, as defined by Ashland Municipal Code ( AMC ) , in order to construct, operate, and maintain a telecommunication system within the municipal boundaries of the City of Ashland ( Franchise Area ); 2. Grantee has requested a franchise to place and operate a telecommunications system, as defined in AMC , within the City s public rights-of-way; and 3. The City has found that Grantee meets all lawful requirements to obtain a franchise, and therefore approves the application. NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties agree as follows: Section 1: Grant of Franchise. The City hereby grants to Grantee a nonexclusive franchise to use the public rights-of-way with the City to construct, operate and maintain a telecommunication system as a limited use telecommunications Grantee as defined in AMC D. Section 2: Term. The term of this franchise shall be five (5) years from the effective date set in Section 8, unless terminated sooner as provided in this agreement or as provided in Title 16 of the Ashland Municipal Code. (See ) (a) The City reserves the right to revise its franchise ordinance(s) at any time to address evolving communications technologies, trends in telecommunications and utility industries, and improved methods of managing public rights-of-way. The City may amend this Agreement upon adoption of revisions to the City s franchise ordinances pursuant to established public notice and comment or other due process, if any, as required under the City s charter, ordinances, and under State law. Section 3: Franchise Area. The Grantee is authorized by this franchise to use public rights-of-way throughout the City, as the City limits may exist now or in the future, for the provision of telecommunications services.

2 Section 4: Performance. (a) During the term of this Agreement, the Grantee agrees to comply with all lawful terms and conditions of AMC Title 16, the provisions of which are incorporated herein as though fully set forth. (b) To the extent any lawful City rule, ordinance or regulation, including any amendment to the provisions of AMC Title 16, is adopted on a jurisdiction-wide basis and is generally imposed on similarly situated persons or entities, the rule, ordinance or regulation shall apply without need for amendment of this Agreement. The City shall provide Grantee notice of any such change in law. Section 5: Franchise Fee. (a) As consideration for the use of the City s public rights-of-way, Grantee shall remit to the City the maximum applicable franchise fee established in AMC and set by Council resolution, including all calculations necessary for City to verify compliance with fee methodology provided in franchise fee resolution. Grantee agrees to pay all amounts by the dates required in AMC and will be subject to interest and penalties established in the AMC. (b) Grantee acknowledges and agrees that the applicable franchise fee due hereunder may vary based on its telecommunications facilities and/or the telecommunications services provided in the City. With each franchise fee payment Grantee shall submit detailed documentation showing its calculation of the franchise fee paid. (c) The City shall have the right to conduct or cause to be conducted, a special examination of Grantee s payment of franchise fees as related to its operating in the City of Ashland as a limited use telecommunication Grantee as defined in AMC The Grantee agrees to provide access to current and accurate books, maps, and other records that are deemed directly relevant to calculation of franchise fee payments by the City s officers and/or agents. Grantee shall provide reasonable access during normal business hours, upon no less than fourteen (14) days prior written notice by the City. Any difference of payment and required interest due either the City or Grantee following a special examination shall be payable within thirty (30) days after written notice to the affected party. (d) Payment of the franchise fee shall not exempt Grantee from the payment of any license fee, permit fee, tax or charge on the business, occupation, property or income of Grantee that may be lawfull imposed by the City or any other taxing authority, except as may otherwise be provided in the ordinance or laws imposing such other license fee, permit fee, tax or charge. Section 6: Franchise Nonexclusive. The franchise hereby granted is not exclusive, and shall not be construed as any limitation on the right of the City to grant rights, privileges and authority to other persons, corporations or to itself to make lawful use of the City s public rights-of-way. Section 7: Notices. Unless specifically provided otherwise in AMC Title 16, all notices shall be mailed, postage prepaid, to the following addresses or to such other addresses as Grantee or the City may designate in writing:

3 If to Grantee: If to City: AT&T Corp Municipal Franchise Agreements 3450 Riverwood Parkway SE Room Atlanta, GA With a mandatory copy to: AT&T Services Inc Law Department Attn: General Attorney and Assistant General Counsel 175 East Houston St 210 San Antonio, TX City of Ashland Information Attn: City Attorney 20 E Main Street Ashland, Oregon Section 8: Effective Date. This Agreement shall take effect on October 1, 2012 and will include applicable franchise fee payment beginning July 1, This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and such counterparts shall constitute one and the same instrument. CITY OF ASHLAND GRANTEE By: Title: Date: By: Title: Date:

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