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April 16, 1999 Attn Warren Miller President, A vista Fiber, Inc 201 W North River Drive, Suite 450 Spokane, WA 99201 Re A vista Fiber Inc.'s request for dark fiber installation in Moscow Pursuant to Fiber Optic Cable Lease Agreement dated February 24, 1999 between A vista Fiber Inc. and Gritman Medical Center Dear Mr. Miller. Thi:, is to confirm that a one-time temporary revocable permit for the installation of "dark" frber optic cable on poles owned by Avista Unlities (torrnerly Washington Water Power Company) is granted to A vista Fiber, Inc. only for the above referenced project because. a. The current franchise agreement between the City and A vista Utilities allows for the placement of poles and lines on City rights-of-way for the provision of energy and other uses; b. The City and A vista Fiber, Inc are currently and in good faith negotiating a franchise to allow A vista Fiber, Inc. to provide the services for which the above U3 being permitted (i.e. ;irnitcd instaUatiotJ of "dark" fiber and attendant infrastructure on and/or in a portion of the City's right-of way); and c It is unlikely that the City would prevent A vista Fiber, Inc. or another provider from the use of City right-of-way under the same or similar circumstances. This one nme temporary revocable permit is granted based upon the information available to the City and provided to the City at the time of such permit's issuance. Gritman dark fiber permit page I of 3 CityHaii P.O. Box 9203, Moscow, !D 83843"1703 206 East 3rd Street i 22 East 4th Street Phone {208} 883f 7000 Phone (208) 883-7000 Hearing impaired (208) 883h 70i9 Fax(208j883g7018 Fax (2081 883-7033 99-25 ---PAGE BREAK--- Information gathered by the City includes a copy of Fiber Optic Cable Lease Agreement between Avista Fiber Inc., and Gritman Medical Center dated February 24, 1999; and conversations with Mike Thomason, Palouse Area Manager of A vista Utilities/Washington Water Power Division; Warren Miller, President of Avista Fiber, Inc.; Musselman, Legal Counsel for Avista Utilities; Kane Francetich, Chief Information Officer of Gritman Medical Center, and Pete Burger, representative of Moscow Family Medicine. It is the City's understanding that Gritman Medical Center will "light" the fiber. This one time temporary revocable permit may be revoked at any time upon sixty (60) days prior writlen notice to A vista Fiber, lnc. by the City. The City does not anticipate revoking this permit unless Avista Fiber, Inc. and the City cannot agree to proper regulation of the City right-of-way by franchise or other allowable legal mechanism or unless there is contractual and/or legal ground to do so. At such time as the City and A vista Fiber, Inc. enter into a franchise agreement, the necessity and/or desirability of this permit shall be revisited. If the City is not permitted to regulate A vista Fiber, Inc. by franchise or relevant ordinance or other allowable legal mechanism, the necessity and/or desirability of this permit shall be revisited. The City reserves all of its rights under federal, state and local law to control the use of City right-of-way by Avista Fiber, Inc and does not, by this permit, waive any such rights. A vista Fiber, Inc. reserves all of its rights under federal, state, and local law regarding the provision of its services in Moscow, Idaho and does not by this permit waive any such rights. A vista Fiber, Inc. agrees to notify the City of any assignment or sublease of services agree to by Avista Fiber, Inc. under the Fiber Optic Cable Lease Agreement between A vista Fiber, Inc. and Gntman ivleciical Center, Article 13.3 Additionaiiy, Avista Fiber, Inc. agrees to notify the City of Gritman Medical Center's exercise of the Buyout option in the aforementioned Agreement If you have any questions regarding the provisions of this one time temporary revocable permit please contact me directly at (208) 883-7006. Gritman dark fiber permit page 2 of 3 ---PAGE BREAK--- Your signature below confirms that A vista Fiber, Inc. understands and accepts all of the conditions upon which this one time temporary revocable permit is granted by the City to proceed with the above referenced project Failure of A vista Fiber, Inc. to abide by the conditions herein shall result in only the revocation of this permit. GRhk Warren Miller President, A vista Fiber, Inc. ACKNOWLEDGMENT STATE OF WASHINGTON ) ) ss COUNTY OF SPOKANE ) Gritman dark fiber permit page 3 of 3