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APPENDIX B Examole 1 Assume the following: Company X contacts the City of Vero Beach and requests inter -building fiber optic cables and fiber connectivity to the BellSouth Central Office for network access. The installation of the inter -building fiber and the branch fiber extension connecting Company X to the existing fiber optic network is to be done by the City of Vero Beach and will cost $25,000. Company X agrees to pay the make-ready costs up -front and agrees to a lease of two fibers from Company X to the BellSouth Central Office at a rate of $50 per fiber per mile per month. Figure 1 graphically depicts the connection to the NETWORK at a point in the section of plant that in this example is referred to as Section 10. Section 10 would be redefined into two separate sections of plant to reflect the interconnection point. Indian River County has 100% ownership of Section 10; it connects to Section 14 for connectivity to the BellSouth Central Office. Section 14, which is 10 KF of 96 fiber cable, is jointly owned by the City (36F), the County (24F), and the School District (36F). Sheets 2 - 4 depict the calculation of the revenue sharing. In the part of the route that is owned 100% by the County, it is obvious that all revenues attributable to that section of plant should be credited to the County. In Section 14, however, the costs of that section of plant were shared by all three entities, and the even though the fibers used by Company X are in the City's fiber count, the County and the School District helped pay for the sheath and should receive a portion of the compensation. Example 2 Assume the following: Company Y approaches the City of Vero Beach about leasing fiber from the BellSouth Central Office in Vero Beach to the intersection of 12"' Street and 27" Avenue (See Figure 2). The initial requirement was for six fibers on an expedited basis; in order to meet the deadline the City of Vero Beach entered into a contract with Company Y and placed a fiber sheath to the desired interconnect point. The alternate route was provided at a later date over a jointly owned portion of the NETWORK. A 36 fiber cable was placed parallel to a 144 fiber cable from the BellSouth Central Office along 17"' Avenue to Vero Beach High School. The 36 fiber cable extended west from VBHS along 16" Street to 27`h Avenue and then south on 27"' Avenue to 12'h Street. This 36 fiber cable is owned equally among the three consortium Joint Fiber Optics Project - Interlocal Agreement Appendix B - Page 1