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Communication and Utility Services 33 technology, where new advances can create new revenue opportunities with very little lead time. The LAS agreement includes a provision that permits Clark County to adjust rent 3 years from the anniversary date of the contract, and every 3 years after that. There is no cap on the adjustment, but the concessionaire can cancel the agreement entirely if the increase is unacceptable. See CRP-CD-81 (enclosed herein), Appendix to Chapter 3, Communication and Utility Services, for an excerpt from LAS' agreement regarding rental rate and fee adjustment provisions. 3.2.7 Maintenance Responsibilities Because a DAS involves the installation of equipment by a third party, airport sponsors should ensure that facilities and maintenance responsibilities are clearly identified and differentiated by responsible party. County responsibilities should include maintenance and repair of terminal buildings, properties, common use areas, HVAC, and utilities. The third party installer's respon- sibilities should acknowledge any improvements, decorations, equipment, and furnishings that it installs. The installer shall also be responsible for connections of all utilities, removal of waste, and general maintenance of interior premises. See CRP-CD-81 (enclosed herein), Appendix to Chapter 3, Communication and Utility Services, for an excerpt based on LAS agreement, which identifies language pertaining to respon- sible parties and their DAS activities within the premises. 3.2.8 Ownership of Equipment Another issue to be resolved when a third party installs equipment concerns the ownership of the equipment at the end of the agreement term. In many airport contracts where equipment is installed, the economics of the agreement allow the airport to maintain ownership because the net book value is zero at the termination date. If the economics of a DAS agreement are similar, and a sponsor is willing to undertake the required maintenance, the airport operator should seek similar rights. See CRP-CD-81 (enclosed herein), Appendix to Chapter 3, Communication and Utility Services, for language expounding on ownership derived from the LAS DAS agreement. 3.2.9 Airport Obstruction Compliance Because some of the DAS equipment may be on the exterior of the terminal, sponsors should also include specific articles or paragraphs describing the mandated compliance with regulations regarding airport obstructions, airspace, FAR Part 77, and other potential hazards. See CRP-CD-81 (enclosed herein), Appendix to Chapter 3, Communication and Utility Services, for text from the LAS agreement outlining regulations and requirements pertaining to airport obstructions, airspace, and other hazards, that must be adhered to by the third party. 3.3 Critical Issues--Telephone Service to Airport Sponsor Airports often have hundreds or thousands of employees, many of whom have telephones in their workspace. Some employees also travel as part of their job, which adds the need for remote telephone access to the required telephone services for an airport sponsor. This service is expen- sive and should be engaged through an agreement which provides for all services that may be required at the best price possible.

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34 Guidebook for Developing and Managing Airport Contracts Critical Issues related to telephone services are as follows: Vehicle operations on airport Copyright and patent rights Work area Excusable delays Terms of payment Description of existing equipment and services desired Transition plan Calling cards Response and communication plan Systems requirements Detailed billing Response to alarms and outages 3.3.1 Vehicle Operations on Airport A contract for providing telephone service may require significant travel to and from the air- port(s) by concessionaire's vehicles. Given heightened security requirements, it is critical that any contract state very clearly the requirements for operating vehicles on the airport and the provi- sions for escorts, security details, and badging requirements for drivers. See CRP-CD-81 (enclosed herein), Appendix to Chapter 3, Communication and Utility Services, for an example of such language, which is found in the agreement for services at the MWAA airports--DCA and IAD. 3.3.2 Copyright and Patent Rights Telephone service, like other services that incorporate technology, is more prone to instances of copyright or patent infringement. Although such an occurrence may not seem likely, spon- sors must protect themselves from liability or damages using language similar to that used in the MWAA agreement. See CRP-CD-81 (enclosed herein), Appendix to Chapter 3, Communication and Utility Services, for language from the MWAA agreement specific to copyright and patent rights as they pertain to services basic to the facility. 3.3.3 Work Area Telephone service often requires the presence of technicians on site to perform routine or emergency maintenance. Often, these service visits require access to very public locations, where an untidy appearance would reflect poorly on the airport. It is therefore important to ensure an agreement includes a provision requiring the provider to maintain a clean work area. See CRP-CD-81 (enclosed herein), Appendix to Chapter 3, Communication and Utility Services, for sample language from the MWAA agreement outlining service provider requirements dealing with work areas and maintenance. 3.3.4 Excusable Delays With complex services such as the provision of telephone service to hundreds of offices and work stations at several locations, delays in execution often occur. Airports have historically been very aggressive in addressing contractor delays in contracts, but, in most cases, the language seeks to

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Communication and Utility Services 35 protect the airport when the delay is the fault of the contractor. More recently, airports have been including language that identifies delays that are excusable, thereby protecting all parties in such a case. In doing so, the airport can specifically identify the delays that are excusable and eliminate potential situations where the fault for delay is subject to misinterpretation. MWAA incorporates an excusable delay provision, which protects both parties when unforeseeable events occur, but also protects the sponsor by limiting the events under which a concessionaire can make a claim of "unforeseeable delay" See CRP-CD-81 (enclosed herein), Appendix to Chapter 3, Communication and Utility Services, for details from the MWAA agreement outlining excusable delay provisions for contractors. 3.3.5 Terms of Payment Because phone service is a supply (cost) and not a revenue source, it is critical that the terms of the sponsor's payments be outlined See CRP-CD-81 (enclosed herein), Appendix to Chapter 3, Communication and Utility Services, for sample payments language derived from the MWAA document. 3.3.6 Description of Existing Equipment and Services Desired In describing existing equipment and services, sponsors should include the maximum detail possible in order to ensure the provider's complete understanding of the services required. See CRP-CD-81 (enclosed herein), Appendix to Chapter 3, Communication and Utility Services, for the reference to MWAA RFP language for examples of the appropriate degree of detail regarding scope of services. 3.3.7 Transition Plan Complex utility services are complicated to provide; changing from one provider to another can be even more complex if a well-crafted transition plan is not agreed on. In the case of tele- phone service, for example, airport sponsors should require a transition plan from the provider that shows that the test procedures and cutover plan will minimize disruption to the sponsor. The sponsor also should require an operations and maintenance plan in order to show the pro- cedures the provider will use to accomplish the scope of work. See CRP-CD-81 (enclosed herein), Appendix to Chapter 3, Communication and Utility Services, for good language from MWAA's RFP describing development of a transition plan and an operations and maintenance plan for procedures relating to the provision of utility services. 3.3.8 Calling Cards For telephone service, sponsors should consider including a requirement for calling cards. Even in the modern age of the mobile phone, airports typically do not supply phones to all staff who may travel for business. For those staff, telephone expenses can be better controlled and monitored through the use of airport-issued calling cards. See CRP-CD-81 (enclosed herein), Appendix to Chapter 3, Communication and Utility Services, for MWAA's telephone service provider agreement for an example of such a provision.