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Resolution 1519RESOLUTION NO. 1519 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, AUTHORIZING THE MAYOR TO ENTER INTO A TOLLING AGREEMENT WITH ZIPLY FIBER NORTHWEST, LLC, A LIMITED LIABILITY COMPANY. WHEREAS, Ziply Fiber Northwest, LLC, conducts cable television operations in the City of Edmonds and pays franchise fees and other sums to the City related to its operations within city jurisdictional boundaries; and WHEREAS, the City is currently conducting an audit of franchise fees and other sums paid by Ziply to the City to ensure Ziply properly paid all amounts owed to the City for the period from January 1, 2019, through December 31, 2021 (the “Audit”); and WHEREAS, the City has not yet received all requested documents related to the Audit from Ziply; and WHEREAS, a period of limitation for recovery of franchise fees arguably applies to a portion of the fees that are the subject of the Audit, and arguably runs later in May; and WHEREAS, in order to avoid the situation where the City would file suit to preserve its claims, and in order to avoid the expense of litigation to both parties, if possible, both Ziply and the City wish to toll any and all limitation periods; and WHEREAS, the City and Ziply each believe that a tolling agreement is in their mutual best interest to preserve claims related to the Audit and avoid litigation costs; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The Mayor is authorized to execute a tolling agreement in substantially the same form as the agreement attached as Exhibit A. DocuSign Envelope ID: F32DC4B3-35B6-4506-A4CA-2FEB62F775E4 RESOLVED this 9th day of May, 2023. MAYOR, MIKE NELSON ATTEST: CITY CLERK, SCOTT PASSEY FILED WITH THE CITY CLERK: May 8, 2023 PASSED BY THE CITY COUNCIL: May 9, 2023 RESOLUTION NO. 1519 DocuSign Envelope ID: F32DC4B3-35B6-4506-A4CA-2FEB62F775E4 EXHIBIT A TOLLING AGREEMENT This Tolling Agreement is entered into by and between Ziply Fiber Northwest, LLC, a limited liability company organized under the laws of the state of Delaware (Ziply) and the City of Edmonds, a municipal corporation of the State of Washington (City), collectively referenced herein as the Parties. RECITALS WHEREAS, a cable franchise (Franchise) governs Ziply’s cable operations within the City’s jurisdictional boundaries, and WHEREAS, the Franchise addresses franchise fees, payments, and audits; and WHEREAS, the City is currently conducting an audit of franchise fees and other sums paid by Ziply to the City to ensure Ziply properly paid all amounts owed to the City for the period from January 1, 2019, through December 31, 2021 (the Audit); and WHEREAS, the City has not yet received all requested documents related to the Audit from Ziply, and WHEREAS, the City has issued Ziply notice of breach of contract for failure to provide requested documents and the Franchise provides Ziply a thirty-day period (until May 8, 2023) to cure or otherwise respond to the contended breach as provided in the Franchise; and WHEREAS, the Franchise mentions a period of limitation for recovery of franchise fees that arguably is applicable to a portion of the fees that are the subject of the Audit, and arguably runs later in May; and WHEREAS, in order to avoid the situation where the City would file suit to preserve all claims, and in order to avoid the expense of litigation to both parties, if possible, both Ziply and the City wish to toll any and all limitation periods, under the franchise or as otherwise provided in contract or law; and WHEREAS, nothing in this Tolling Agreement is intended to extend Ziply’s thirty-day period to cure or otherwise respond to City’s notice of breach of contract as provided in the Franchise; and WHEREAS, the City and Ziply each believe that this Tolling Agreement is in their mutual best interest to preserve claims related to the Audit. ACCORDINGLY, the sufficiency of consideration hereby acknowledged, the Parties agree as follows: 1. All periods of limitation are tolled through April 28, 2024, including contractual, statutory, or otherwise, in favor of either the City or Ziply, in connection with any claims, 1 DocuSign Envelope ID: F32DC4B3-35B6-4506-A4CA-2FEB62F775E4 EXHIBIT A defenses, and/or counterclaims related to unpaid franchise fees or any other sums due the City. 2. Nothing is this Tolling Agreement shall operate to relieve Ziply of its obligations under the Franchise, including its obligations to cure or otherwise respond under the Franchise, and nothing in this Tolling Agreement shall prevent the City from filing suit before April 28, 2024, if it determines it to be in the City’s best interests. If the City determines to file suit on or prior to April 28, 2024, it will provide Ziply with notice ten (10) business days prior to filing the complaint. 3. The execution of this Tolling Agreement is not and shall not be construed as evidence of or an admission of liability for any claim or cause of action. 4. This Tolling Agreement is the product of joint negotiation between the Parties and their respective attorneys and shall not be construed against either of the Parties. 5. This Tolling Agreement contains the entire agreement of the Parties and supersedes any prior written or oral agreements between them concerning the subject matters contained herein. No supplement, modification, or amendment to this Tolling Agreement shall be binding unless executed in writing. 6. This Tolling Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. This Tolling Agreement may be delivered by facsimile transmission or electronic transmission in PDF format of signed counterparts. Facsimile or electronic signatures will be treated in all respects as having the same effect as an original signature. 7. The persons signing below represent they are authorized to act to bind each party and their signature does bind the party on whose behalf they sign. 8. All notices, requests, demands, and communications hereunder will be given by email addressed to the parties as follows: CITY: City of Edmonds Oscar Antillon, Director of Public Works Oscar.antillon@edmondswa.gov With copies to: Jeff Taraday jeff@lighthouselawgroup.com and Angela Tinker angela@lighthouselawgroup.com 2 DocuSign Envelope ID: F32DC4B3-35B6-4506-A4CA-2FEB62F775E4 ZIPLY legal @ziply.com With copies to: Jessica Epley (iessica.epley@ziply.com) and; George Thomson (george.thomson@ziply.com). 9. Effective Date. This Tolling Agreement is effective on the date signed by Ziply. ZIPLY FIBER By: Name: George Baker Thomson, Jr. Title: Associate General Counsel CITY OF EDMONDS By: _ Name: Title: Date:________________________ DocuSign Envelope ID: F32DC4B3-35B6-4506-A4CA-2FEB62F775E4 Michael Nelson 5/10/2023 Mayor