FRANCHISE AGREEMENT BETWEEN
Inhabitants of the Town of Chebeague
Island AND
AXIOM Technologies, LLC
THIS Franchise Agreement
(“Franchise Agreement”) is entered into
on , 2022, by
and between the Inhabitants of
the Town of Chebeague Island, a Maine municipal corporation (hereinafter
referred to as the
“To.wn”), and
Axiom Technologies LLC, a
Limited Liability
Company duly
organized under the
laws of the State of Maine, with a place of business located at 3 Water
Street, Machias, ME 04654 (hereinafter referred to as
“Axiom”).
WITNESSETH
WHEREAS,
the Town
is interested in entering
into a
mutually beneficial
agreement for
the purpose
of supporting fiber optic Internet service across the Town and
whereas the Town and Axiom desire to establish procedures governing the
operation / maintenance of the Internet system, being services to be
provided by Axiom; and
WHEREAS, the
parties are entering into a Construction Agreement which is expressly
conditioned on the execution of this Franchise Agreement. Defined terms
used herein without definition shall have the meaning ascribed to them
in the Construction Agreement;
NOW, THEREFORE,
the aforementioned parties (“Parties”) agree in consideration of the
promises, mutual covenants and other good and valuable consideration as
follows:
The Town will be
the owner of a fiber optic distribution and fiber optic Internet system,
hereinafter referred to
as the
“System”, capable
of providing
all residents,
businesses, and other
organizations of the Town with
high-speed Internet services, including VOIP voice, while meeting
delivery of service goals described herein this document. The System
shall be constructed with a target completion date 12 to 14 months upon
the initiation of the pole licensing and make ready
process.
Axiom will fully
operate and maintain the System on behalf of the Town and Axiom will be
provided exclusive rights to
operate the
System. Internet
service subscriptions
will be
used to
generate appropriate
revenue to sustainably operate and maintain the System to provide
service to residents, businesses, and other organizations of the Town,
and to pay a franchise fee back to the Town to satisfy debt service for
construction. These elements are referred to as the “Franchise” for an
initial term of twelve (12)
years.
The parties
acknowledge and agree that the following three (3) conditions are
express conditions precedent to all of the Town’s obligations under this
Franchise Agreement:
1.
The Town’s receipt
of grant funding in an amount not less than
$600,000;
2.
The Town’s ability
to secure financing on terms acceptable to the
Town.
3.
Execution by all
parties of Franchise Construction
Agreement.
4.
Town Meeting
approval of this and any related
agreements.
1.
DEFINITIONS
a.
Internet
system: also referred
to as
the “System”
is the
fiber-optic infrastructure
consisting of fiber optic cabling, transmission, reception, and
distribution equipment, technology, controls, and all equipment
necessary for the operation of the System, to be installed in the Town
capable of serving every premises in the town, up to the limits defined
in Attachment A of the Franchise Construction Agreement, which may be
amended on the consent of the parties. With the exception of the
operation rights granted to Axiom pursuant
and subject
to the
terms herein,
The System,
including the
Drops (defined
below), any upgrades made to the System, and any intellectual or
physical property in connection therewith, is owned exclusively by the
Town.
b.
Premises:
refers to
any home, business,
or municipal
structure in the
Town that
will receive a
fiber-optic connection.
2.
COMPLIANCE WITH
APPLICABLE LAWS AND ORDINANCES
Axiom and its
subcontractors shall comply at their cost with all statutes, codes,
ordinances, rules or regulations applicable to the System and its
operation and will comply with the Equal Employment Opportunity Act.
3.
OVERVIEW AND
GOALS
The Town Island
enters into this Franchise Agreement seeking reliable, high-speed
fiber-to- the-premises Internet service
available in the
entire Town,
capable of
making 1
Gbps symmetrical
service available to
all subscribers
while maintaining
an affordable subscription price.
The overall goal is
service that meets the Town’s needs now and well into the future; that
is consistent and reliable
despite seasonality of the
community’s population; and
that serves
individual year-round and seasonal residences, municipal and civic
institutions, telecommuters, and local
businesses.
EFFECTIVE DATE AND FRANCHISE TERM
a.
Initial Term:
The Franchise granted under this Franchise Agreement shall take effect
and be in full force from the date of mutual signing of the Franchise
Agreement, and the
satisfaction of
the conditions precedent contained
herein, for
a period of
twelve (12)
years, subject to
the terms
and conditions set forth
in this
Franchise Agreement. During
this term, and any
subsequent renewal term, Axiom shall have the exclusive right to operate
the System that will provide Internet services to the residents,
businesses, and other organizations of the Town. Axiom agrees the Town
shall have the option to extend this Franchise Agreement for an
additional eight (8) year
term.
b.
Reviews: The
Initial Term shall include an informal review of this Franchise
Agreement as desired and a formal review in the 4th, 8th
and 12th year. Axiom will provide the following quantifiable
metrics and goals related to the operation of the System based on
Axiom’s published internal
company goals
(the “Service
Levels”. The
performance of
Axiom against the
Service Levels will be reviewed at each meeting. The Service Levels will
include the following
factors:
i.
Individual
subscriber experience(s)
1.
Customer
satisfaction with speed performance.
2.
Number of service
complaints.
3.
Reasons for service
interruptions.
4.
General customer
service experience, including response
times.
ii.
Technological
changes
1.
Review and discuss
current technology.
2.
Review any industry
upgrades that are applicable to
service.
3.
Create a mutually
shared investment strategy for any new upgrades mutually agreed
upon.
4.
Pricing/Service
changes.
c.
The
Town shall
evaluate Axiom’s
performance against
the aforementioned
criteria, and any other
criteria it
deems relevant, and
may
respond as
set forth in
Section 5,
Subsection V below (“REVIEW OF FRANCHISE HOLDER
PERFORMANCE”).
4.
FRANCHISE HOLDER
RESPONSIBILITIES
Axiom
shall operate
and maintain
the System
at its
sole cost
in strict
compliance with all
laws, ordinances, rules and regulations that affect The
System.
Axiom is
responsible for the System operations, meeting the needs of customers
and the business, and its obligations to the Town as the System owner.
Axiom agrees to participate in the
Affordable Connectivity Program or its successor.
Axiom
is responsible, at its
sole cost,
for connecting
the System
to a
backbone internet
service provider capable of supporting the System and all users
at the advertised speeds, with an over- subscription ratio of
8.0.
Axiom is permitted
to offer only internet access or telephone via the System. Any other
services contemplated
for offer
via the
System (i.e.,
television or
other offers
using non-IP
delivery systems) will be
at the
Town’s discretion.
However, any
new service considered
by the
Town and not
related to Axiom’s
Internet franchise
will be
discussed with
Axiom to
determine its
impact on the Axiom
franchise agreement and terms of that agreement and on the overall
impact of the System. If it is determined that the effects of any new
service would have an impact on Axiom’s Franchise or adversely affect
Axiom’s delivery of service, both Parties commit to negotiate a mutually
beneficial solution.
5 SYSTEM
OPERATIONS
I.
GENERAL
a.
The Service
area is defined as all residences and businesses on the main island of
Chebeague only, as shown in Attachment A (“System Description and Map of
anticipated fiber routes”) to the Construction Agreement between the
Town and Axiom.
b.
Axiom will
manage, monitor, control and maintain all System operations, as
necessary to operate the System efficiently and with minimal
interruption in service.
c.
Axiom will
take all orders for service and will provide billing for and collect
subscriptions and other Town approved fees from Customers, and offer
service packages as detailed in Schedule
D.
d.
Axiom will
provide supporting data to the Town as required for reports to any
regulatory authority (if needed) when new customers are added over the
5-year term of reporting requirements, and for the Town to know the
status and billing related details of all subscribers, and their service
enrollment, as the Town
desires.
e.
Axiom shall
have the right to establish different classifications of subscriber
service in accordance with Schedule
D.
f.
The Initial
Install Period will end on the date upon which the Town provides written
acceptance of the
System as
completed. Customers who
subscribe during
the Initial
Install Period will incur no charges for a standard aerial
connection or for an underground connection
with conduit
separate from
an electrical
service conduit
already in
place. Axiom reserves
the right to charge a reasonable set up fee to cover overhead and design
costs related to any new connection requested after the end of the
Initial Install Period.
g.
Axiom
will maintain
customer service
hours between
8am-11pm, Monday
through Sunday. All
service interruptions shall be initially communicated by customers via a
call or email to Axiom tech support. Any calls after customer service
hours are handled on a case-by-case basis at the sole discretion of
Axiom.
h.
Axiom
will supply
and maintain
a fully
equipped bucket
truck on
the island
for service
calls that require work on the system at the utility pole or at
height.
i.
Axiom shall
periodically inform subscribers how to obtain support services and the
procedure for
reporting problems
and getting
complaints resolved related
to the
operation of the System.
j.
Axiom
will maintain
24/7/365 network
operational oversight and
resolve systemic
network operation issues as they
arise.
k.
For
those issues
that cannot
be resolved
via telephone,
a service
call will
be dispatched
per the direction
of Axiom.
An on-island technician will
be dispatched
only by
Axiom staff,
after determining that the issue cannot be resolved by
phone.
l.
Axiom will
hire and maintain at Axiom’s cost a service technician in the Town, to
handle day to
day operational issues
involving customer subscriber
issues that
cannot be
resolved by phone.
m.
Axiom will
maintain a fully trained and equipped field crew that can be dispatched
to maintain, fix, or otherwise
troubleshoot network issues
in the
Town as
needed. In
this case the Town expects an on-island visit within 24 hours of the
issue being unresolved by the local technician.
n.
Upon
receiving written
or verbal
notice from
a customer
or the
System owner,
Axiom shall promptly
investigate and resolve complaints regarding the quality of service,
equipment malfunctions and similar
matters.
o.
Axiom will
take all orders for new service and will bill and collect all payments
for existing service.
II
SERVICE
QUALITIES
a.
Equal
Treatment. In its rates, Axiom shall not make or grant any preference or
advantage to any person nor any prejudice or disadvantage, within the
same classification of
service.
b.
Net
Neutrality. In providing
service Axiom
shall comply
with the
Open Internet
regulations as amended.
c.
No Blocking.
Axiom shall not block lawful content, applications, services, or
non-harmful devices.
d.
No
Throttling. Axiom shall not impair or degrade lawful internet traffic on
the basis of content, application, service plan or service, or the use
of non-harmful devices.
e.
No
Paid Prioritization.
Axiom shall
not engage
in paid prioritization,
meaning management of the
System, to directly or indirectly favor some traffic over other
traffic.
f.
No Data Caps.
Axiom shall not assign data caps to broadband services, meaning there
will not be
any subscriber
volume limitation
on amount
of data
per month
per premises
or
per device connected to the
System where exceeding the cap could subject a customer to alterations
to its internet access, such as reduction of access speed, additional
charges, suspension of service, or termination of
service.
III SYSTEM
MAINTENANCE
a.
Axiom will
maintain all equipment, cabling (Drops, Trunk and ancillary cabling),
home installation kits
and any
and all
necessary fiber installation
products and
ancillary needs
to keep the System operational, making repairs and/or
replacements as necessary.
b.
Axiom will
provide guidance and planning services on trunk maintenance and Drop
installation.
c.
Axiom and the
Town will jointly determine ongoing upgrades to speed and technology as
needed to keep service and reliability standards, as mutually agreed
upon in writing.
d.
All upgrades
to the System shall be the joint responsibility of the Town and Axiom,
with the Town supporting upgrades to the Central Office and main trunk
lines and Axiom supporting the Drops and home equipment, if upgrades are
warranted, those responsibilities will determine the cost and which
party would be responsible for aspects of the upgrade to ensure the
continuous operation of the System by the Town or
Axiom.
e.
Axiom will
maintain all Customer Premises equipment and all fiber lines that start
at the street and go to the home or business, otherwise known as “Drops”
at Axiom’s cost, including
replacing them
if that
is necessary
to restore
proper operation
or reliable
service. For the avoidance of doubt, the Drops are part of the
System and owned by the Town.
f.
Axiom will
make all emergency repairs on behalf of the Town, due to unforeseen
circumstances that would require Axiom or subcontracted crews to visit
the Town as needed in the event of a large outage due to damage or
failure of equipment or cable in the CO or trunk
line.
IV
FRANCHISE
FEES
a.
Axiom
will guarantee
payment to
the Town of
a flat
franchise fee yearly,
paid quarterly,
totaling an amount to
cover the
cost of
the bond
or the
annual equivalent
after retirement of
the bond plus a sum meeting one of the following
conditions:
i $10,000,
to be added to
a fund
for System
upgrades or
to help defray
the cost of additional
drops, or
ii. the cost of any liability
insurance the Town is required to carry by pole owners (collectively,
“Franchise Fee”, regardless of the number of System customers. Detailed
information about payment amounts, payment schedules and other aspects
of the monetary relationship between the two parties is shown in
Schedule D.
b.
In the event
that the number of subscribers exceeds three hundred (300), Axiom shall
increase its Franchise payment to the Town by $5 per subscriber per
month.
c.
As
maintained, the System must:
i.
Accommodate
significant swings in usage to respond to the seasonality of the Town’s
population, without degradation of
service.
ii.
Provide
sufficient capacity for bandwidth to all premises to accommodate
increased bandwidth needs for future municipal and telehealth facilities
including, but not limited to, video conferencing and database sharing.
iii.
Meet Service
principles for subscribers specified as the Service Level Agreement as
set forth in Schedule C.
V
REVIEW OF
FRANCHISE HOLDER PERFORMANCE
a.
All aspects
of subscriber fees, Exchanges of Service and other matters related to
subscriber cost, service levels and standards and equipment
functionality will be reviewed by the Town and Axiom every four (4)
years upon the execution of this Franchise
Agreement.
b.
As described
in Section 3(b), every four (4) years a formal review of Axiom’s service
will be conducted by the Town. If Service Levels do not meet the goals
set forth in this Franchise Agreement, the Town shall have the right to
terminate the Franchise Agreement with Axiom, subject to the
stipulations described in Section 5(IV)(c)
following.
c.
In the event
the Town, at any time, reasonably believes Axiom has failed to meet the
goals set forth in Section 5.III (“Potential Breach”), The Town shall
provide Axiom written notice of such Potential Breach and within twenty-one
(21) days of providing such notice,
the parties shall meet in good faith to resolve
the issues set
forth in
the written
notice. After
meeting pursuant
to the foregoing, if
it is determined by the Town, in good faith that Axiom has not met
the goals
set forth
in Section
5.3 (“Default”),
the Town
shall provide
Axiom with written notice detailing the default and Axiom shall
have thirty (30) days (the “Cure Period”)
to resolve
the Default.
If the
Default has
not been
cured by the
expiration of the Cure Period, the Town may unilaterally terminate this
Franchise Agreement.
d.
Upon
termination (1) Axiom shall pay the Town all undisputed amounts due and
unpaid hereunder through the date of termination and (2) Axiom shall
return in
good condition
to the Town all
equipment and
other System
property owned by the Town in Axiom’s possession, including
administrative accounts, logins and passwords associated with systems
contained within the Central Office of the System or any other location
where such information
exists.
6.
POLE
LICENSING
The Town, as the
holder of pole attachments licenses, will name Axiom as its contractor
performing any pole attachment related repairs and Axiom shall hold the
required insurance to make
and maintain
pole attachments.
Axiom shall
be responsible
for arranging
for and
paying the yearly pole
rental fees, on behalf of the Town. Axiom shall be responsible for
applying for and maintaining pole attachment licenses. The Town shall
provide Axiom with any information or other support required for such
licenses. See Schedule B.
7.
CONDITIONS OF SYSTEM
MAINTENANCE
Maintenance of the System by Axiom
shall conform to the following requirements:
a.
The Town will
work with appropriate entities to obtain authorization for and hereby
conveys, to the extent
the same
are conveyable,
to Axiom the rights
to acquire,
construct, erect, suspend, install, renew, maintain, repair,
replace, extend, enlarge and operate the System throughout the Town, in,
upon, along, across, above, over and under the streets, easements,
public right of ways and Town owned land, which may include underground
conduits, trenches, splice boxes, wires, cables, and pole attachments as
related to providing Internet and phone services to the residents of
Town. The Town will further work with appropriate entities to obtain the
same authorizations detailed above as required for Axiom to make
connections between the System and individual subscribers’ premises,
either separately or in conjunction with any public easement and
authority within the limits of the Town.
8.
CONDITIONS ON STREET
OCCUPANCY
a.
If at any
time after the Initial Install Period but during the period of this
Franchise Agreement the
Town shall
lawfully elect
to alter
or change
the grade,
alignment or routing of any
street, sidewalk, public right of way or public property Axiom will
contribute the labor cost to remove, re-lay and relocate the internet
cabling, while the costs of any new
equipment or materials, transport or otherwise items needed to
complete the work needed due
to the
above-mentioned
construction would be
the responsibility
of the
Town.
b.
The
Town consents
to permitting
Axiom to
trim trees
and clear
debris or
brush as
needed, at their expense, to allow access to the System equipment
as necessary.
c.
At the
request of any person holding a building-moving permit, demolition
permit or relocation permit or who requires for whatever reason a
relocation of the fiber entrance to their Premises and/or a relocation
of the Customer Premises Equipment on their property, Axiom shall move,
relocate, raise or temporarily uninstall System equipment as needed.
The costs
of such
work by
Axiom will
be borne
by the
person requesting
the work, as determined
by Axiom’s then-prevailing rate for onsite professional services
plus any
third-party costs required by the
job at hand. Axiom shall require a minimum of thirty (30) business days’
notice to arrange for this work to occur.
9.
LIABILITY AND
INDEMNIFICATION
a.
Each
party agrees to hold harmless and to indemnify the other party for any
liability that may occur as the result of such party’s (i) breach of
this Franchise Agreement or (ii) negligence
or willful
misconduct. Nothing
in this
Agreement shall
be construed
as a waiver of any defense or indemnity against any third party that
the Town may have under the Maine Tort Claims Act (14 M.R.S.
§§
8101-8118 ) or that Axiom may have by virtue of its role
as the Town’s contractor.
b.
Axiom shall
maintain throughout the terms of this Franchise Agreement liability
insurance in accordance with industry norms and shall name the
Town as additional insured on all such policies. Proof of such insurance
is included in Schedule B and shall be maintained and provided annually
to the Town.
10.
SAFETY
REQUIREMENTS
a.
Axiom shall,
at all times employ ordinary care and shall install and maintain in use
commonly accepted methods and devices for preventing failure and
accidents which are likely to cause damage, injuries or nuisances to the
public.
b.
Axiom shall
install and maintain any wires, cables, fixtures, and equipment in
accordance with the
requirements of all
applicable federal, state
and local
ordinances, codes, laws
and regulations. No fiber will be laid on any exposed ground
surfaces. All installs will be on utility poles only unless in
underground or protected enclosures approved by the Town in advance,
except on private property if required by the property owner and in such
cases at the owner’s risk.
c.
Axiom
shall maintain
in a
safe, suitable,
substantial condition and
in good
order and
repair all structures, equipment,
cabling and
lines in
or over,
under or
upon the
streets, sidewalks and
public right of ways or public
places.
11.
OWNER
RESPONSIBILITIES
The
Town shall
pay the
costs of
repairs for
any catastrophic events affecting
the Central
Office equipment
a.
The Town
shall commit to Rights-of-Way access to Axiom for the life of the
Franchise Agreement.
12.
MARKETING
The
Town agrees
to work closely with
Axiom to
help inform
residents of the
Town of
the existence of the
System and the available levels of service through various
communications means, including but not limited to web sites, Facebook,
email lists, and bulletin boards, etc., to encourage participation and
maintain high subscription
rates.
13.
NEW
DEVELOPMENTS
It shall be the
policy of both the Town and Axiom to amend this Franchise Agreement as
needed upon the reasonable request of either party, when necessary to
enable the Town and Axiom to take
advantage of
any technological
developments in
the field
of fiber
optic transmission and
related services, or to allow Axiom to more effectively, efficiently, or
economically, serve customers without a degradation in services.
Similarly, Axiom shall make efforts to periodically upgrade the System
so that it maintains a level of performance that is consistent with
commercially reasonable industry standards for broadband internet
service and/or the Service Level Agreement set forth in Schedule C.
Notwithstanding the foregoing or anything to the contrary herein, no
provision of this Franchise Agreement may be amended or modified unless
such amendment or modification is agreed to in writing and signed by
both Parties.
In the event the
Town creates new congregate housing after the Initial Install Period,
the parties shall meet and discuss how to most efficiently service these
additional customers.
There
is potential to use
the Town’s
network to
provide other
services over
the fiber,
whether utilizing capabilities of G-PON or XGS-PON to deliver
phone and broadcast video out of band of the Internet service, or other
new technology as may be developed from time to time. Those additional
services might be offered by a third party or by Axiom. Such
opportunities shall be considered on a case-by-case basis, and the
Parties to this Franchise Agreement
will:
a.
Ensure
there is
sufficient capacity available
in the
System, or
use of separate
wavelengths, such that delivery
of the
new
service will
not be
detrimental to
the quality
of service
or the ability to
support future expansion of existing services. Neither shall it impede
or diminish the opportunity to access existing services by current and
potential future
subscribers.
b.
Ensure that
the proposed service meets an expectation that the municipal network
exists to support delivery of services reasonably considered necessary
for the general good and welfare of its inhabitants. Equally, that the
service offered shall not be bundled nor predatory in its service and
pricing terms, such as attractive initial pricing on long term service
contracts without very clearly communicating what the price will be
after expiration of the
introductory price. Further
that the
provider of
service must
offer service to potential subscribers
and offer
them equal
terms, without
discriminating against anyone on
the basis
of color,
gender, gender
identity, age,
perceived race,
social class,
or heritage.
c.
Ensure that
the Town and Axiom will be appropriately compensated for the use of the
fiber-optic network capacity utilized and last mile delivery of the new
service to the service’s subscribers via the
System.
d.
Ensure that
Axiom’s revenue and ability to provide internet service is not adversely
affected. If implementation of the new service would impose any
additional maintenance costs or requirements for administration of the
System upon Axiom, that Axiom will be appropriately compensated,
including a modest profit, and is agreeable to doing
so.
e.
Ensure that
the Town and the party to provide the new service agree on the schedule
and manner of payments to the Town and/or Axiom, the reporting to the
Town of who is subscribed, and if deemed appropriate by the Town, given
the nature of the service, the manner of discount provided by the new
provider for income qualified
subscribers.
f.
Reserve the
right of the Town, as the owner and manager of a finite public resource,
to refuse to
commit the
municipal network
to the delivery of
any and
all services
not satisfying the
public good.
14.
MODIFICATIONS BY
REASON OF STATUTES AND GOVERNMENT
REGULATIONS
If at any time,
any section of this Franchise Agreement conflicts with operation under
or compliance with
any federal
or state
statutes or
with regulations of
the Federal
Communications Commission or any other State or Federal
regulatory agency, said section shall be altered to conform to said
statute or regulations.
15.
SEVERABILITY
If any section,
subsection, clause, phrase or portion of this Franchise Agreement is for
any reason held invalid or unconstitutional by any court of competent
jurisdiction such portion shall be deemed a separate, distinct, and
independent provision and such holding shall not affect the validity of
the remaining portions of this Franchise Agreement.
16.
TRANSFER OF
FRANCHISE AGREEMENT
Axiom shall not
transfer or assign any rights under this Franchise Agreement to any
other person or entity without prior written approval of the Town, which
approval shall not be unreasonably withheld. Any such transfer shall be
in writing, which shall include an express acceptance
of all
terms and
conditions of
this Franchise
Agreement, and
which may,
at the
Town’s election, contain an
escrow account
containing funding
sufficient to
make one
(1) year
of bond
or other financing payments. Any assignment or transfer without
prior written consent shall constitute a material breach of this
Franchise Agreement, which may result in the revocation of the Franchise
Agreement. In making such a determination of whether to approve or
reject a transfer or assignment, the Town may consider, among other
factors, the following:
a.
The
creditworthiness, financial, technical and legal qualifications of the
proposed transferee or
assignee.
b.
If
requested by
the Town, submittals
for the
proposed transferee
or assignee,
on what,
if any, changes it intends to make to the operations and
maintenance of The System.
c.
The
experience of the proposed transferee or
assignee.
d.
Any corporate
or other connections between Axiom and the proposed transferee or
assignee.
e.
Any
other aspect
of the
proposed transferee or assignee’s
background, which could
affect health, safety, and welfare of the citizens of the Town as
it relates to operation of the System
Upon written
request by the Town, the transferor shall provide an attested statement
that a transfer of the System has been effectuated. Notwithstanding the
foregoing, this Franchise Agreement is binding upon the Parties and
their successors and assigns.
17.
ACCESS FEES AND
OTHER PAYMENTS
Axiom
agrees to
pay the
Town the
Fees and
Other Payments
detailed in
Schedule D.
The Town agrees to retain working records of Axiom payments to the
Town for the life of this Franchise Agreement. Axiom agrees to provide
payments to the Town within thirty (30) days of the end of each calendar
quarter for residential customers and an annual payment in June of each
year for all seasonal
customers.
18.
COUNTERPARTS
This Franchise
Agreement may be executed in any number of counterparts, each of which
shall be deemed an original and all of which taken together shall
constitute a single Franchise Agreement. This Franchise Agreement may be
executed by facsimile or PDF via email or service such as DocuSign.
19.
GOVERNING LAW
This Franchise
Agreement and the rights and obligations of the Parties hereto shall be
interpreted and enforced in accordance with and governed by the laws of
the State of Maine, without regard to the conflict of laws and
provisions thereof.
20.
DISPUTE
RESOLUTION
Except
as otherwise
agreed by
the parties
in writing,
the parties
shall work
together to
resolve disputes either through mediation or non-binding
arbitration. In the event that they are unable to reach a resolution
through this process, all disputes, controversies, claims, counterclaims
and other matters in question between the Town and Axiom arising out of
or relating to this Agreement shall be decided by a Maine court of
competent jurisdiction. Except as otherwise expressly agreed by the
parties in writing, exclusive venue for a civil action shall be in the
Maine Superior Court (Cumberland
County).
IN WITNESS
WHEREOF, the Town has caused this Franchise Agreement to be duly
executed in its name by the Select Board as authorized by a vote of the
Town Meeting on
, 2022, and Axiom has caused
this Franchise to be duly executed in its name and behalf by Mark
Ouellette, President and CEO, all being duly authorized to act in their
respective capacities, as of the date of signing.
Inhabitants of the Town of
Chebeague Island |
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Donna Miller Damon, Chair |
Signature:
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Date: |
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Jean-Louis Beaupre, Vice Chair
Signature:
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Date: |
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Jen Belesca
Signature:
|
Date: |
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Mark Dyer
Signature:
|
Date: |
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John “Jay” Corson |
|
|
Signature:
Date:
Axiom Technologies, LLC
Mark Ouellette, President & CEO
Signature:
Date:
SCHEDULE
A
Description of System & Capabilities
●
System
Description:
The fiber optic system being
deployed in the Town will bring a dedicated fiber connection to each
home and business from the Central Office equipment. Access to
best-in-class reliability and supporting speeds of up to 1Gbps of
symmetrical service (G-PON) are highlights of a system that will rival
any FTTP system in the United States. The system is capable of handling
future growth in new homes or businesses expected in the community and
is considered future proof for the next 20 years or more. The system
architecture will have limited ports capable of delivering 10Gbps (XGS-PON)
of service to the right premises equipment, and that can be expanded
with upgrades to the electronics and home equipment in the future, as
needs/demand dictate.
Details of Network construction will
be as shown in ATTACHMENT A to the Construction Agreement between the
Inhabitants of the Town of Chebeague Island and AXIOM Technologies LLC.
SCHEDULE C
Service Level Agreement
Axiom will maintain telephone support between 6am to 11pm, and an
automated support line to report outages outside of these hours.
All technical support and billing and payment questions
can be addressed by contacting Axiom at (207)255-0679 or through email
at
support@connectwithaxiom.com
or
billing@connectwithaxiom.com
Axiom Network Guarantee
You
get what you pay for, and Axiom guarantees that our service to your
house will meet or exceed what service you pay for- no “up to” or “best
effort” service. Whatever rate group you pay for, Axiom will provide
that level of bandwidth 24/7- 7 days a week, no matter how much demand
is being put on the system. Axiom also guarantees that latency, measured
at the subscriber ONT, will not exceed 25 ms, and that there will never
be more than one splitter between any subscriber and the Central Office.
Call Us!
If
you feel that you are not receiving the proper amount of bandwidth,
please call us. We can’t troubleshoot an issue that we are unaware of.
Often the trouble lies within the home’s network, and not with the
delivery of service to the home. Troubleshooting a potential issue
begins with an investigation that will take place once you call. We can
look at the line, your service history, and other aspects of the
connection to try and pinpoint the issue.
Fiber just works
Because fiber optics is the most reliable technology to deliver
internet, often the situation can be fixed over the phone with a few
simple steps. If not, we will have a local technician visit your home to
further diagnosis and fix any issues with the fiber delivery system. If
all else fails, we dispatch a more experienced crew within 24 hours to
resolve the problem.
Credits to your account
Should you have an extended outage, Axiom is prepared to credit your
account for the time you were down subject to the following limitations:
1) Customer must contact Axiom at 207-255-0679 to open a ticket on
affected service; 2) Does not include Customer Premises Equipment, any
scheduled maintenance event, Customers Local Area Network, Customer
caused interruptions, and any force majeure events. Service Credit
requests will be determined on a case-by-case basis and should be made
while on the phone with our technician. Please allow reasonable time for
credit requests to be adequately researched by Axiom before credits are
posted to the customer account.
If you are experiencing any difficulty
with your service- please call us at 207-255-0679 and we will work to
promptly fix the issue.
SCHEDULE D
Subscriber Services, Fees, Payments to the Town & Other Revenue
SUBSCRIBER SERVICES
Beginning in the first fiscal year
of full operation after the System has established an operational
customer connection (operational meaning the first connection is
operating at broadband speed without interruption for 48 hours), Axiom
will make payments to the Town that will meet the total guaranteed
payment following a yearly
schedule:
All payments for non-seasonal
customers are due on a quarterly basis within 30 days of September 30
(first quarter), and December 31 (second quarter) March 31 (third
quarter), June 30 (fourth quarter) for each fiscal year of the term of
the Franchise Agreement.
All payments for seasonal
customers are due within 30 days of June 1 for each year of the term of
the Franchise Agreement.
Expected
Yearly
Total Payment Guarantee |
Cost of annual debt service
plus the greater of:
$10,000 to be added to an
upgrade fund,
or,
The actual cost of the Town’s annual liability insurance premium as
required by pole owners
|
We have modeled our payments on
the amount of borrowing- which we estimated at $840,000- anticipating
that grant funding or other funding would cover $800,000 in cost of
construction.
Axiom agrees to furnish the Town
all necessary and convenient documents and information for the purpose
of identifying the number and type of customers.
The Parties agree to the following
conditions for changes to rates and payments, and that in such
circumstances, the Parties agree to update the payment schedule,
accordingly:
1)
Changes in
subscriber rates or modifications will be reviewed every four (4) years
at the annual review and at that time any new subscriber rates will be
determined with full transparency from Axiom. It is not Axiom’s intent
to raise rates, but circumstances in the future could necessitate a
monthly rate change.
2)
Changes in
subscriber rates or modifications to the payment amounts to Axiom must
first be approved jointly by the Town and by
Axiom.
3)
Higher speed
service type offerings may be added by Axiom, without requiring approval
by the Town, but the service levels below must always remain
available
Rate Groups |
Year Round |
Seasonal |
50/50Mbps |
$59.99/month |
$59.99/month between
May 1 and November 1.
$20/month in 6
month off season.
($30/month for "Internet of Things" Device connectivity only) |
100/100Mbps |
$79.99/month |
$79.99/month between
May 1 and November 1
$20/month in 6 month
off season.
($30/Month for
"Internet of Things" Device connectivity only) |
500/500Mbps |
$109.99/mo. |
$109.99/month between May 1 and November 1
$20/month in 6
month off season.
($30/Month for
"Internet of Things" Device connectivity only) |
Seasonal Service
is fixed for 6 months at full monthly payment, if any subscriber who is
considered seasonal would require service outside of the fixed 6-month
summer season, they will be required to move to monthly residential
service.
Seasonal service
subscribers are prohibited from taking service for less than the 6-month
full-price monthly service.
Any subscriber may connect or
disconnect service once per year.
POLE LEASE FEES
Pole lease fees for The System are a
cost of operation, thus the required total pole lease amount shall be
added to the amount paid annually by Axiom to the Town from Axiom’s share
of subscriber fees. The Town, as the holder of pole attachment licenses,
shall pay the lease fees.
GRANTS
It is expected that the provision of
Broadband in the Town will open up opportunities for state, federal and
private grants for additional services to Town residents before and during
the Franchise term. Grants are important to bring down the total amount
borrowed and just as importantly bring down the yearly bond payments.
Axiom agrees to participate in writing and provide support for any
appropriate grant applications.
In the event any grants are secured
after the initial install period, and those grants are applied to reduce
the cost of the bond, a corresponding reduction in Franchise Fees will be
adjusted to pay for the new bond payment amount. In the event grants are
received, but are not applied to the bond, Axiom and the Town will
determine, in good faith, the distribution of that grant. Axiom agrees not
to take any actions that would preclude the Town from qualifying for any
state, federal or private grants related to broadband internet services.
Axiom agrees to comply with any applicable grant requirements.
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