1. Information Technology Department
DARK FIBER INDEFEASIBLE RIGHT
OF USE (IRU) EXCHANGE AGREEMENT WITH CONTACT NETWORK, LLC,
d/b/a INLINE
Information Technology Department

2. Martin Costa, President, CPA
Guest Introduction
Martin Costa, President, CPA

3. AGENDA Project Opportunity Fiber Optics 101 Proposed IRU Agreement
Options
Questions

4. PROJECT OPPORTUNITY
InLine constructing mile regional fiber project for national carrier
InLine approached the City and proposed a public/private partnership for fiber expansion
50+ miles of a larger project
Negotiations ongoing, but short timeframe (60-90 days from construction)

5. FIBER OPTICS 101 Types of Fiber Optic Cable Multi Mode Single Mode
Typically used for shorter internal connections
Powered by LEDs
Single Mode
Typically used for longer connections (1 km+)
Powered by Lasers
Dark Fiber – refers to unused or ‘dark’ fiber optic cable. No electronics or light sources are attached to either end of the cable.

6. FIBER OPTICS 101 cont. Anatomy of a Fiber Optic Cable
Each Buffer Tube Contains 12 Individual Fibers
A 288 Fiber Cable Contains 24 Buffer Tubes
36 Fibers = 3 Buffer Tubes

7. FIBER OPTICS 101 cont. Installation
Typically installed underground in conduit but can be direct buried.
Can also be installed above ground attached to utility poles.
Buried fiber is installed with copper wire for locating purposes.
Marker poles installed along fiber route indicate buried cable.

8. FIBER OPTICS 101 cont. Connectivity (as it relates to capacity)
Typical connection uses 2 fibers (1 transmit, 1 receive).
Multi-Tenant buildings may use one fiber connection to a multi-port switch.
Electronics allow for Wavelength Division Multiplexing (WDM)
Light is split into individual wavelengths
Each wavelength = separate connection

9. PROPOSED IRU AGREEMENT

10. InLine Lease of City Fiber
Inline to ‘lease’ approximately 34 miles of existing City owned fiber
Inline leasing 36 fibers of City owned 144/288 fibers (depending on segment)

11. City Lease of InLine Fiber
City to ‘lease’ approximately 15 miles of proposed InLine fiber to be constructed
City leasing 36 fibers from InLine

12. InLine Construction and Transfer of Fiber
InLine to install an additional 1.3 miles of fiber to Water Treatment Plant #2 and turnover to City

13. Proposed Key Agreement Terms
Agreement will effectively ‘swap’ 15 miles of fiber
InLine will pay the City to ‘lease’ the remaining 19 miles of fiber
34 miles total – 15 miles leased by City
Lease amount is currently being negotiated
City will pay the cost of fiber install to Water Treatment Plant #2
Proposed installation cost of $40,000
Previous City installation cost estimate of $107,000
City will save $12,600 per year for connection costs
Term of 20 years, with the option for 2, 10 year renewals
InLine to sign non-compete for existing direct customers

14. Options City does not swap fiber and leases entire 34 miles to InLine
No expansion benefits (connectivity)
Additional revenue from leased miles
InLine does not build and transfer WWTP#2 fiber to the City
City does not realize cost savings for construction and ongoing connection costs

15. Benefits Expand FiberNet More Revenue and Lower Expenses to City
15 Mile Expansion
High Speed Connection to City Facilities at Minimal Cost
More Revenue and Lower Expenses to City
Additional Revenues from Long-term Lease
Lower Expenses for High Speed Connection to City Facilities
Additional High-Speed Connections to Community and Beyond
Paving the Way for 5G

16. Questions?
Palm Coast Pkwy includes Old Kings Rd and Cypress Point Pkwy